Publication of the Tier 2 Tax Rates

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published

November 25, 2025

Issuing agencies

Treasury DepartmentInternal Revenue Service

Abstract

Publication of the tier 2 tax rates for calendar year 2026 as required by section 3241(d) of the Internal Revenue Code. Tier 2 taxes on railroad employees, employers, and employee representatives are one source of funding for benefits under the Railroad Retirement Act.

Full Text

<html>
<head>
<title>Federal Register, Volume 90 Issue 225 (Tuesday, November 25, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 225 (Tuesday, November 25, 2025)]
[Notices]
[Page 53444]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-21000]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service


Publication of the Tier 2 Tax Rates

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Publication of the tier 2 tax rates for calendar year 2026 as 
required by section 3241(d) of the Internal Revenue Code. Tier 2 taxes 
on railroad employees, employers, and employee representatives are one 
source of funding for benefits under the Railroad Retirement Act.

DATES: The tier 2 tax rates for calendar year 2026 apply to 
compensation paid in calendar year 2026.

FOR FURTHER INFORMATION CONTACT: Kathleen Edmondson, CC:EEE:EOET:ET1, 
Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 
20224, telephone number (202) 317-6798 (not a toll-free number).

SUPPLEMENTARY INFORMATION: 
    Tier 2 Tax Rates: The tier 2 tax rate for 2026 under section 
3201(b) on employees is 4.9 percent of compensation. The tier 2 tax 
rate for 2026 under section 3221(b) on employers is 13.1 percent of 
compensation. The tier 2 tax rate for 2026 under section 3211(b) on 
employee representatives is 13.1 percent of compensation.
    Authority: 26 U.S.C. 3241.

Philip J. Lindenmuth,
Acting Associate Chief Counsel (Employee Benefits, Exempt Organizations 
and Employment Taxes).
[FR Doc. 2025-21000 Filed 11-24-25; 8:45 am]
BILLING CODE 4830-01-P


</pre></body>
</html>

View on FederalRegister.gov →Plain-text source

Indexed from Federal Register on November 25, 2025.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.