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 employ...
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.
26 U.S.C. 3241