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Publication of the Tier 2 Tax Rates

Publication of the tier 2 tax rates for calendar year 2025 as required by section 3241(d) of the Internal Revenue Code. Tier 2 taxes on railroad employees, employers, and employ...

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Department of the Treasury

Internal Revenue Service

AGENCY:

Internal Revenue Service (IRS), Treasury.

ACTION:

Notice.

SUMMARY:

Publication of the tier 2 tax rates for calendar year 2025 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 2025 apply to compensation paid in calendar year 2025.

FOR FURTHER INFORMATION CONTACT:

Kathleen Edmondson, CC:EEE:EOET:ET1, Internal Revenue ( printed page 93037) 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 2025 under section 3201(b) on employees is 4.9 percent of compensation. The tier 2 tax rate for 2025 under section 3221(b) on employers is 13.1 percent of compensation. The tier 2 tax rate for 2025 under section 3211(b) on employee representatives is 13.1 percent of compensation.

Authority:26 U.S.C. 3241.

Rachel Levy,

Associate Chief Counsel (Employee Benefits, Exempt Organizations and Employment Taxes).

[FR Doc. 2024-27487 Filed 11-22-24; 8:45 am]

BILLING CODE 4830-01-P

Legal Citation

Federal Register Citation

Use this for formal legal and research references to the published document.

89 FR 93036

Web Citation

Suggested Web Citation

Use this when citing the archival web version of the document.

“Publication of the Tier 2 Tax Rates,” thefederalregister.org (November 25, 2024), https://thefederalregister.org/documents/2024-27487/publication-of-the-tier-2-tax-rates.