Summary of USC Rates in 2020
There were no adjustments announced to the Universal Social Charge (USC) in Budget 2020. But on January 10th 2020 it was announced by the Minister of Finance that there would be a small change to USC in 2020.
In 2020 the USC threshold will be raised in line with the increase to the minimum wage. So the current threshold of the 4.5% rate will go up from €19,874 to €20,484.
The maximum benefit per person works out at just €15.25 per annum or 29c per week.
The USC amendment will be legislated for later in 2020 as part of the Finance Bill ,but in the meantime , Revenue have agreed that this will be implemented on an “administrative basis” for the 2020 tax year.
Summary of 2020 USC Rates
€0 – €12,012 0.5%
€12,012 – €20,484 2%
€20,484 – €70,044 4.5%
€70,044 plus 8%
Self -employed income over €100,000 : have a 3% surcharge (so they pay 11% USC)
(People with Income under €13000 are exempt from USC)
An example: Someone earning €50,000 per year will pay the following annual Universal Social Charge in 2020 (€1558)
- 0.5% on the first €12,012 (which comes to €60.06)
- 2% on the next €8,471 (which comes to €169.44)
- 4.5% on the balance of €29,516 (which comes to €1,328.22)
- This person will pay a total USC of €1,558 in 2020.
- This person would have paid a total USC of €1,573 in 2019.
- A reduction of €15
Everyone earning over €20,484 will see a small reduction in USC in 2020. The maximum benefit per person is €15.25 per annum or 29c per week.
Universal Social Charge (USC) began in January 2011. It was introduced in the 2011 Budget – this was the last Budget of the Fianna Fail/ Green coalition.
More here about the History of the USC in Ireland