Medical Card Holders USC Rates

Updated for 2013 Budget

The USC rates as introduced in the 2011 Budget were originally the same for Medical Card holders under 70 as for everyone else under 70  – but the government soon backed down and ended up  treating Medical Card holders  the same as over 70’s   – i.e  a maximum USC rate of  4% .

A person  does not need to hold a medical card for the full year to qualify for the 4% maximum USC. It is due as long as the individual holds a full medical card for some period during the year. The holder needs to supply  sufficient evidence to their employer/pension provider that they hold a full medical card to enable them to apply the correct 4% maximum rate from the next pay period.

Budget 2013 introduced some changes to USC – now medical card holders will pay the top rate of 7% USC if their total income is over €60,000. The same change has been applied to over 70’s too.
All other people with medical cards have USC capped at 4%

See USC Rates for 2013 Here

The change will see someone over 70 with a €100,000 occupational pension and €22,703 state pension paying €2520 more USC in 2013 compared to 2012. The 2012 USC would be  €3799 and the 2013 USC will be €6319.

People who live in Northern Ireland – and work in the Republic are treated as if they have a medical card and this change to USC will affect them if they earn over €60k .

In the North a medical card is issued to everyone. It is not a means tested thing  – it just confirms that you can use the NHS.
Irish Revenue state that a Northern Irish medical card is to be treated the same as an Irish one for USC purposes.