The 2011 Budget introduced a new tax on income called the Universal Social Charge in January  2011. In 2011 – all individuals were  liable to pay the USC if their gross annual income was more than €4004  (€77 a week).

Budget 2012 – increased the threshold for USC – so that only people on incomes over €10036 a year (€193 a week) will pay the charge from January 2012

See here for details of USC Deductions for 2012

The rates for  USC from January 2012 will be as follows

Zero if total income is  under  €10036 a year

For people with income of  €10,036 or more the rates will be :

2% on  all income from 0 up to  €10,036

4% on earnings between  €10,037 and  €16,016

7% on any income over  €16,016

People aged  70 or more will have a  maximum rate of of 4% USC  (Even on Income over €16,016 ) .

Medical card holders also will have a top rate of 4% USC .  See Medical Cards and USC here

Some incomes are not liable for  USC  – such as welfare benefits , state pensions. BUT – these exempt income types are still used to calculate your total income . So if you have a private pension of €4000 a year and a state pension of €10,000 a year  – you will be liable for USC on the private pension because your total income is over €10036. So you will pay 2% of €4000 – which is €80.

See here for the  Income types that are not subject to the Universal Social Charge

See Here for  Examples of 2011 USC Calculations

For PAYE workers – the Universal Social Charge will be deducted from wages. Where the USC has been applied for particular pay period(s) throughout the year but at year end you are ultimately not liable or are liable for a lower rate you will be due a refund of some or all of any Universal Social Charge paid.

Refunds : Where you have been in continuous employment with an employer throughout the year in question (i.e., from 1 January to 31 December), your employer should refund any overpayment of Universal Social Charge deducted at the end of the year. (Check that they do). Where you have not been in continuous employment with a single employer throughout the year-  Revenue will deal with any refund .

The Health Levy was charged  at 4% on all earnings  above €26000  up to €75,036 and 5% on earnings over €75,036.

The Income Levy was set at 2% on income up to €75,036, 4% on income from €75,037 to €174,980 and 6% on income above €174,980. (Exempt if Medical Card holder or earning less than €15,028)