Dáil Éireann Debate, Wednesday - 8 May 2024
156. Deputy Michael Ring asked the Minister for Finance to outline the amount of USC tax paid in 2023 by a single PAYE worker who has a gross income of €60,000, €70,000, €80,000, €90,000, €100,000 and €110,000, in tabular form. [20501/24]
Amharc ar fhreagra157. Deputy Michael Ring asked the Minister for Finance the amount of USC tax paid in 2023 by a couple who are jointly assessed and have equal incomes which gross at €60,000, €70,000, €80,000, €90,000, €100,000, €110,000 and €120,000, respectively, in tabular form. [20502/24]
Amharc ar fhreagraI propose to take Questions Nos. 156 and 157 together.
The Universal Social Charge (USC) was designed and incorporated into the Irish taxation system in 2011 to replace the Health and Income Levies. Its primary purpose was to widen the tax base and to provide a steady income to the Exchequer to provide funding for public services. It is a more sustainable charge than those it replaced and is applied at a low rate on a wide base, which ensures that it is a stable and sustainable source of revenue for the State.
The USC is an individualised tax, meaning that a person’s liability to the tax is determined on the basis of a person’s own individual income and personal circumstances. As such the amount of USC paid in 2023 will depend on facts and circumstances pertaining to the individual’s situation.
The Table below sets out the USC rates and thresholds for a PAYE worker in 2023. The USC structure contains a €13,000 per annum exemption threshold. However, once income exceeds €13,000 an individual is liable to pay USC.
Table 1 – USC Thresholds and Rates for 2023
|
Threshold for 2023 |
Rate |
|
First €12,012 |
0.5% |
|
Next €10,908 |
2% |
|
Next €47,124 |
4.5% |
|
Balance |
8% |
As part of the overall Budget documentation, the Tax Policy Changes document includes detailed distributional analysis of the personal income tax measures announced in the Budget. The distributional analysis incorporates tables demonstrating the impact of the Budget changes on various household types, including single persons, married couples with and without children, PAYE and self-employed income earners over a wide distribution of income levels. For example, in relation to Budget 2024, the distributional analysis shows the existing amount of income tax and USC (relating to 2023), and the proposed amount of income tax and USC taking account of the Budget 2024 measures. While not all of the specific income levels specified by the Deputy are included in the distributional analysis, I am satisfied that the distributional analysis covers a range of income levels which are broadly comparable.
It is available at: www.gov.ie/en/publication/ccc22-budget-2023-taxation-measures/.
