26 U.S. Code § 3201 - Rate of tax
In addition to other taxes, there is hereby imposed on the income of eachemployee a tax equal to theapplicable percentage of the compensationreceived during any calendar year by such employeefor services rendered by such employee. For purposes of the preceding sentence, the term “applicable percentage” means the percentage equal to the sum of the rates of tax in effect under subsections (a) and (b) ofsection 3101 for the calendar year.
In addition to other taxes, there is hereby imposed on the income of eachemployee a tax equal to the percentage determined under section 3241 for any calendar year of thecompensation received during such calendar year by such employeefor services rendered by such employee.
For application of different contribution bases with respect to the taxes imposed by subsections (a) and (b), see section 3231(e)(2).
2014—Subsec. (b).Pub. L. 113–295 amended subsec. (b) generally. Prior to amendment, subsec. (b) consisted of pars. (1) and (2) establishing the tier 2 tax and its applicable percentage.
2001—Subsec. (b).Pub. L. 107–90 amended heading and text of subsec. (b) generally. Prior to amendment, text read as follows: “In addition to other taxes, there is hereby imposed on the income of each employeea tax equal to 4.90 percent of the compensationreceived during any calendar year by such employeefor services rendered by such employee.”
1990—Subsec. (a).Pub. L. 101–508 substituted “applicable” for “following” before “percentage of the” and provision defining the term“applicable percentage” for provision specifying that in the case of compensationreceived during 1985 the rate of tax was 7.05 percent, for 1986 or 1987 the rate was 7.15 percent, for 1988 or 1989 the rate was 7.51 percent, and 1990 or thereafter the rate was 7.65 percent.
1987—Subsec. (b).Pub. L. 100–203 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “In addition to other taxes, there is hereby imposed on the income of each employeea tax equal to the following percentage of the compensationreceived during any calendar year by such employeefor services rendered by such employee:
“In the case of during: | The rate shall be: |
|---|---|
1985 | 3.50 |
1986 or thereafter | 4.25.” |
1983—Pub. L. 98–76, § 221, amended section generally, substituting a two tiered tax system with accompanying tax rate tables and a cross reference tosection 3231 of this title, for provisions which had taxed an employeeat 2.75 percent of so much of the compensationpaid in any calendar month to such employeefor services rendered by him as was not in excess of an amount equal to one-twelfth of the current maximum annual taxable “wages” as defined in section 3121 for any month and which had provided that the rate of tax imposed by subsection (a) be increased by the rate of the tax imposed with respect to wages by section 3101(a) plus the rate imposed by section 3101(b) of so much of the compensationpaid in any calendar month to such employeefor services rendered by him as was not in excess of an amount equal to one-twelfth of the current maximum annual taxable “wages” as defined in section 3121 for any month.
Pub. L. 98–76, § 211(a), substituted “2.75 percent” for “2.0 percent”.
1981—Subsec. (a).Pub. L. 97–34 added subsec. (a).
Subsec. (b).Pub. L. 97–34 designated existing provisions as subsec. (b) and substituted “The rate of tax imposed by subsection (a) shall be increased by” for “In addition to other taxes, there is hereby imposed on the income of every employeea tax rate equal to”.
1976—Pub. L. 94–455 struck out “of theInternal Revenue Code of 1954” after “wages by section 3101(a)”, “of such Code” after “rate imposed by section 3101(b)”, “afterSeptember 30, 1973,” after “for services rendered by him”, “of theInternal Revenue Code of 1954” after “as defined in section 3121”, and “afterSeptember 30, 1973” after “for any month”.
1975—Pub. L. 94–93 inserted “in any calendar month” after“compensationpaid”.
1973—Pub. L. 93–69 substituted new tax rate provisions on income of employeefor services rendered afterSept. 30, 1973, for former provisions which prescribed 6¼, 6½, 7, 7¼, and 7½ percent on income for services rendered afterSept. 30, 1965,Dec. 31, 1965,Dec. 31, 1966,Dec. 31, 1967, andDec. 31, 1968, respectively, as is not in excess of (i) $450, or (ii) an amount equal to one-twelfth of the current maximum annual taxable “wages” as defined in section 3121 of theInternal Revenue Code of 1954, whichever is greater, for any month afterSeptember 30, 1965: Provided, That the rate of tax imposed by this section shall be increased, with respect to compensationpaid for services rendered afterSeptember 30, 1965, by a number of percentage points (including fractional points) equal at any given time to the number of percentage points (including fractional points) by which the rate of the tax imposed with respect to wages bysection 3101(a) plus the rate imposed by section 3101(b) at such time exceeds 2¾ percent (the rate provided by paragraph (2) of section 3101 as amended by theSocial Security Amendments of 1956).
1966—Pub. L. 89–700 substituted “rendered afterSeptember 30, 1965” for “rendered afterDecember 31, 1964”, and “(i) $450, or (ii) an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 of theInternal Revenue Code of 1954, whichever is greater, for any month afterSeptember 30, 1965” for “$400 for any calendar month before the calendar month next following the month in which this provision was amended in 1963, or $450 for any calendar month after the month in which this provision was so amended and before the calendar month next following the calendar month in which this provision was amended in 1965, or (i) $450, or (ii) an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 of theInternal Revenue Code of 1954, whichever is greater, for any month after the month in which this provision was so amended”.
Pub. L. 89–699 substituted “7 percent” for “6¾ percent” in subd. (3), “7¼ percent” for “7 percent” in subd. (4), and “7½ percent” for “7¼ percent” in subd. (5).
1965—Pub. L. 89–212 substituted pars. (1) to (5) for former pars. (1) and (2) which imposed a tax equal to 6¾ percent of so much of the compensationpaid to such employeefor services rendered by him after the month in which this provision was amended in 1959, and beforeJan. 1, 1962, and 7¼ percent of so much of the compensationpaid to such employeefor services rendered by him afterDec. 31, 1961, and inserted “and before the calendar month next following the calendar month in which this provision was amended in 1965, or (i) $450, or (ii) an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 of theInternal Revenue Code of 1954, whichever is greater, for any month after the month in which this provision was so amended”.
Pub. L. 89–97 substituted “the rate of the tax imposed with respect to wages by section 3101(a) at such time exceeds 2¾ percent (the rate provided by paragraph (2) of section 3101 as amended by theSocial Security Amendments of 1956)” for “the rate of the tax imposed with respect to wages by section 3101 at such time exceeds the rate provided by paragraph (2) of such section 3101 as amended by theSocial Security Amendments of 1956” and inserted “plus the rate imposed by section 3101(b)” after “section 3101(a)”, respectively.
1963—Pub. L. 88–133 limited existing taxable compensationbase of $400 to any calendar month before Nov. 1963 and increased such base to $450 for any calendar month after Oct. 1963.
1959—Pub. L. 86–28 increased tax from 6¼ percent of compensationnot in excess of $350 for any calendar month to 6¾ percent of the compensationnot in excess of $400 for any calendar month for services rendered beforeJan. 1, 1962, and to 7¼ percent for services rendered afterDec. 31, 1961, and required an increase in the rate of tax with respect to compensationpaid for services rendered afterDec. 31, 1964, by a number of percentage points equal at any given time to the number of percentage points by which the rate of tax imposed bysection 3101 of this title at such time exceeds the rate provided by par. (2) of such section 3101 as amended by theSocial Security Amendments of 1956.
1954—ActAug. 31, 1954, substituted “$350” for “$300”.
Amendment byPub. L. 113–295 effectiveDec. 19, 2014, subject to a savings provision, seesection 221(b) of Pub. L. 113–295, set out as a note undersection 1 of this title.
Amendment byPub. L. 107–90 applicable to calendar years beginning afterDec. 31, 2001, seesection 204(f) of Pub. L. 107–90, set out as a note undersection 24 of this title.
Pub. L. 100–203, title IX, § 9031(b),Dec. 22, 1987,101 Stat. 1330–296, provided that:
Pub. L. 98–76, title II, § 212,Aug. 12, 1983,97 Stat. 419, provided that:
Pub. L. 98–76, title II, § 227(a),Aug. 12, 1983,97 Stat. 426, provided that:
Pub. L. 97–34, title VII, § 741(e),Aug. 13, 1981,95 Stat. 347, provided that:
Amendment byPub. L. 94–455 applicable with respect to compensationpaid for services rendered afterDec. 31, 1976, seesection 1903(d) of Pub. L. 94–455, set out as a note undersection 3101 of this title.
Pub. L. 94–93, title II, § 207,Aug. 9, 1975,89 Stat. 467, provided that:
Pub. L. 93–69, title I, § 109(b),July 10, 1973,87 Stat. 165, provided that:
Pub. L. 89–212, § 6,Sept. 29, 1965,79 Stat. 862, provided that:
Pub. L. 89–97, title I, § 105(b)(4),July 30, 1965,79 Stat. 336, provided that:
Amendment bysection 111(c)(1) of Pub. L. 89–97 applicable to calendar year 1966, or to any subsequent calendar year but only if by October 1 immediately preceding such calendar year theRailroad Retirement Tax Act [this chapter] provides for a maximum amount of monthly compensationtaxable under such Act during all months of such calendar year equal to one-twelfth of maximum wages whichFederal Insurance Contributions Act [section 3101 et seq. of this title] provides may be counted for such calendar year, seesection 111(e) of Pub. L. 89–97, set out as an Effective Date note undersection 1395i–1 of Title 42, The Public Health and Welfare.
Pub. L. 86–28, title II, § 202,May 19, 1959,73 Stat. 30, provided that:
Act Aug. 31, 1954, ch. 1164, pt. IV, § 407,68 Stat. 1042, as amended by actOct. 22, 1986,Pub. L. 99–514, § 2,100 Stat. 2095, provided that:
Pub. L. 93–69, title III, § 301,July 10, 1973,87 Stat. 168, provided that:
For provision that no penalties or interest shall be assessed on account of any failure to make timely payment of taxes imposed by subsec. (b) of this section with respect to payments made for the periodJan. 1, 1982, and endingJune 30, 1982, to the extent that such taxes are attributable tosection 3 of Pub. L. 97–123 or the amendments made by that section, seesection 3(f) of Pub. L. 97–123, set out as a note undersection 3101 of this title.