Universal Social Charge to be reduced in Budget 2016
Workers in Ireland complain at length about the universal social charge but thankfully it’s going to be reduced. Finance Minister Michael Noonan confirmed this week that the USC will be cut by at least 1%.
Irish Budget 2016 - the universal social charge rate will be cut at least 1%
People who earn up to €70,000 per annum currently pay a top rate of 7% USC. If the top rate of USC is cut by 1%, a person earning €35,000 per annum would be better off by €175 per year.
This hugely unpopular tax was introduced in 2011 as an emergency measure and replaced the health and income levies.
There have been calls to abolish it but that’s unlikely to happen as it’s said to bring in over €4bn a year. The current rates are as follows:
|
Income Band |
USC Rate |
|
Up to €12,012 |
1.5% |
|
From €12,012.01 to €17,576 |
3.5% |
|
From €17,576.01 to €70,044 |
7% |
|
Any PAYE income over €100,000 |
8% |
We’d welcome a reduction in USC as a step in the right direction following signs of recovery in the economy. Think you could be due a USC refund? Check out our Irish Tax Refund page now or get a free estimate using our calculator.
Check out the changes in Budget 2016.
The average Irish tax refund is €1,880
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