Internal Revenue Code:Sec. 3101. Rate of tax
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 21 - FEDERAL INSURANCE CONTRIBUTIONS ACT
Subchapter A - Tax on Employees
Statute
Sec. 3101. Rate of tax
(a) Old-age, survivors, and disability insurance
In addition to other taxes, there is hereby imposed on the income
of every individual a tax equal to the following percentages of the
wages (as defined in section 3121(a)) received by him with respect
to employment (as defined in section 3121(b)) -
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In cases of wages received during: The rate shall be:
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1984, 1985, 1986, or 1987 5.7 percent
1988 or 1989 6.06 percent
1990 or thereafter 6.2 percent.
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(b) Hospital insurance
In addition to the tax imposed by the preceding subsection, there
is hereby imposed on the income of every individual a tax equal to
the following percentages of the wages (as defined in section
3121(a)) received by him with respect to employment (as defined in
section 3121(b)) -
(1) with respect to wages received during the calendar years
1974 through 1977, the rate shall be 0.90 percent;
(2) with respect to wages received during the calendar year
1978, the rate shall be 1.00 percent;
(3) with respect to wages received during the calendar years
1979 and 1980, the rate shall be 1.05 percent;
(4) with respect to wages received during the calendar years
1981 through 1984, the rate shall be 1.30 percent;
(5) with respect to wages received during the calendar year
1985, the rate shall be 1.35 percent; and
(6) with respect to wages received after December 31, 1985, the
rate shall be 1.45 percent.
(c) Relief from taxes in cases covered by certain international
agreements
During any period in which there is in effect an agreement
entered into pursuant to section 233 of the Social Security Act
with any foreign country, wages received by or paid to an
individual shall be exempt from the taxes imposed by this section
to the extent that such wages are subject under such agreement
exclusively to the laws applicable to the social
security system of such foreign country.
Sources
(Aug. 16, 1954, ch. 736, 68A Stat. 415; Sept. 1, 1954, ch. 1206,
title II, Sec. 208(b), 68 Stat. 1094; Aug. 1, 1956, ch. 836, title
II, Sec. 202(b), 70 Stat. 845; Pub. L. 85-840, title IV, Sec.
401(b), Aug. 28, 1958, 72 Stat. 1041; Pub. L. 87-64, title II, Sec.
201(b), June 30, 1961, 75 Stat. 141; Pub. L. 89-97, title I, Sec.
111(c)(5), title III, Sec. 321(b), July 30, 1965, 79 Stat. 342,
395; Pub. L. 90-248, title I, Sec. 109(a)(2), (b)(2), Jan. 2, 1968,
81 Stat. 836; Pub. L. 92-5, title II, Sec. 204(a)(1), Mar. 17,
1971, 85 Stat. 11; Pub. L. 92-336, Sec. 204(a)(2), (b)(2), July 1,
1972, 86 Stat. 421, 422; Pub. L. 92-603, Sec. 135(a)(2), (b)(2),
Oct. 30, 1972, 86 Stat. 1362, 1363; Pub. L. 93-233, Sec. 6(a)(1),
(b)(2), Dec. 31, 1973, 87 Stat. 954, 955; Pub. L. 94-455, title
XIX, Sec. 1903(a)(1), Oct. 4, 1976, 90 Stat. 1806; Pub. L. 95-216,
title I, Sec. 101(a)(1), (b)(1), title III, Sec. 317(b)(2), Dec.
20, 1977, 91 Stat. 1510, 1511, 1540; Pub. L. 98-21, title I, Sec.
123(a)(1), Apr. 20, 1983, 97 Stat. 87.)
References in Text
REFERENCES IN TEXT
Section 233 of the Social Security Act, referred to in subsec.
(c), is classified to section 433 of Title 42, The Public Health
and Welfare.
Miscellaneous
AMENDMENTS
2004 - Pub. L. 108-203, Sec. 415. Section 3101(c) is amended by
striking ``to taxes or contributions for similar purposes under'' and
inserting ``exclusively to the laws applicable to''.
1983 - Subsec. (a). Pub. L. 98-21 substituted table of rates for
former pars. (1) to (7) which had imposed a tax on the income of
every individual (1) with respect to wages received during the
calendar years 1974 through 1977 at the rate of 4.95 percent; (2)
with respect to wages received during the calendar year 1978 at the
rate of 5.05 percent; (3) with respect to wages received during the
calendar years 1979 and 1980 at the rate of 5.08 percent; (4) with
respect to wages received during the calendar year 1981 at the rate
of 5.35 percent; (5) with respect to wages received during the
calendar years 1982 through 1984 at the rate of 5.40 percent; (6)
with respect to wages received during the calendar years 1985
through 1989 at the rate of 5.70 percent; and (7) with respect to
wages received after Dec. 31, 1989, at the rate of 6.20 percent.
1977 - Subsec. (a). Pub. L. 95-216, Sec. 101(a)(1), substituted
''1974 through 1977'' for ''1974 through 2010'' in par. (1),
substituted ''wages received during the calendar year 1978, the
rate shall be 5.05 percent'' for ''wages received after December
31, 2010, the rate shall be 5.95 percent'' in par. (2), and added
pars. (3) to (7).
Subsec. (b). Pub. L. 95-216, Sec. 101(b)(1), substituted ''wages
received during the calendar year 1978, the rate shall be 1.00
percent'' for ''wages received during the calendar years 1978
through 1980, the rate shall be 1.10 percent'' in par. (2),
substituted ''wages received during the calendar years 1979 and
1980, the rate shall be 1.05 percent'' for ''wages received during
the calendar years 1981 through 1985, the rate shall be 1.35
percent'', in par. (3), substituted ''wages received during the
calendar years 1981 through 1984, the rate shall be 1.30 percent''
for ''wages received after December 31, 1985, the rate shall be
1.50 percent'' in par. (4), and added pars. (5) and (6).
Subsec. (c). Pub. L. 95-216, Sec. 317(b)(2), added subsec. (c).
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1903(a)(1)(A),
redesignated pars. (5) and (6) as (1) and (2), respectively.
Former pars. (1) to (4), which related to a tax rate of 3.8 percent
with respect to wages received during the calendar year 1968, a tax
rate of 4.2 percent with respect to wages received during the
calendar years 1969 and 1970, a tax rate of 4.6 percent with
respect to wages received during the calendar years 1971 and 1972,
and a tax rate of 4.85 percent with respect to wages received
during the calendar year 1973, respectively, were struck out.
Subsec. (b). Pub. L. 94-455, Sec. 1903(a)(1)(B), redesignated
pars. (3) to (6) as (1) to (4), respectively. Former pars. (1) and
(2), which related to a tax rate of .60 percent with respect to
wages received during the calendar years 1968, 1969, 1970, 1971,
and 1972 and a tax rate of 1.0 percent with respect to wages
received during the calendar year 1973, respectively, were struck
out.
1973 - Subsec. (a)(4). Pub. L. 93-233, Sec. 6(a)(1), struck out
provision for application of 4.85 percent rate of tax during
calendar years 1974, 1975, 1976, and 1977.
Subsec. (a)(5). Pub. L. 93-233, Sec. 6(a)(1), increased rate of
tax from 4.80 percent to 4.95 percent and substituted calendar year
''1974'' for ''1978'' as the initial year for application of such
rate.
Subsec. (a)(6). Pub. L. 93-233, Sec. 6(a)(1), increased rate of
tax from 5.85 percent to 5.95 percent.
Subsec. (b)(2). Pub. L. 93-233, Sec. 6(b)(2), struck out
provision for application of 1.0 percent rate of tax during
calendar years 1974, 1975, 1976, and 1977.
Subsec. (b)(3). Pub. L. 93-233, Sec. 6(b)(2), incorporated former
provision of par. (2) for taxation of wages received during
calendar years 1974, 1975, 1976, and 1977, decreased the applicable
rate of tax from 1.0 percent to 0.90 percent, and struck out
provision for 1.25 percent rate of tax for calendar years 1978,
1979, 1980.
Subsec. (b)(4). Pub. L. 93-233, Sec. 6(b)(2), incorporated former
provision of par. (3) for taxation of wages received during
calendar years 1978, 1979, and 1980, decreased the applicable rate
of tax from 1.25 percent to 1.10 percent, and struck out provision
for 1.35 percent rate of tax for calendar years 1981, 1982, 1983,
1984, and 1985.
Subsec. (b)(5). Pub. L. 93-233, Sec. 6(b)(2), incorporated former
provision of par. (4) for taxation of wages received during
calendar years 1981 through 1985 at applicable 1.35 percent rate of
tax and struck out provision for 1.45 percent rate of tax for wages
received after Dec. 31, 1985.
Subsec. (b)(6). Pub. L. 93-233, Sec. 6(b)(2), incorporated former
provision of par. (5) for taxation of wages received after Dec. 31,
1985 and increased the applicable rate of tax from 1.45 to 1.50
percent.
1972 - Subsec. (a)(3). Pub. L. 92-603, Sec. 135(a)(2)(A),
substituted ''the calendar years 1971 and 1972'' for ''any of the
calendar years 1971 through 1977''.
Subsec. (a)(3) to (5). Pub. L. 92-336, Sec. 204(a)(2),
substituted ''any of the calendar years 1971 through 1977'' for
''the calendar years 1971 and 1972'' in par. (3), ''any of the
calendar years 1978 through 2010'' for ''the calendar years 1973,
1974, and 1975'' and ''4.5'' for ''5.0'' in par. (4), and
''December 31, 2010'' for ''December 31, 1975'' and ''5.35'' for
''5.15'' in par. (5).
Subsec. (a)(4). Pub. L. 92-603, Sec. 135(a)(2)(B), substituted
''wages received during the calendar years 1973, 1974, 1975, 1976,
and 1977, the rate shall be 4.85 percent;'' for ''wages paid during
any of the calendar years 1978 through 2010, the rate shall be 4.5
per cent; and''.
Subsec. (a)(5). Pub. L. 92-603, Sec. 135(a)(2)(B), substituted
''wages received during the calendar years 1978 through 2010, the
rate shall be 4.80 percent; and'' for ''wages paid after December
31, 2010, the rate shall be 5.35 percent''.
Subsec. (a)(6). Pub. L. 92-603, Sec. 135(a)(2)(B), added par.
(6).
Subsec. (b)(2). Pub. L. 92-603, Sec. 135(b)(2), increased rate of
tax from 0.9 percent to 1.0 percent.
Subsec. (b)(2) to (5). Pub. L. 92-336, Sec. 204(b)(2), inserted
references to 1976 and 1977 and substituted ''0.9'' for ''0.65'' in
par. (2), substituted references for the calendar years 1978
through 1985 for references to the calendar years 1976 through 1979
and substituted ''1.0'' for ''0.70'' in par. (3), substituted
references for the calendar years 1986 through 1992 for references
to the calendar years 1980 through 1986 and substituted ''1.1'' for
''0.80'' in par. (4), and substituted ''1992'' for ''1986'' and
''1.2'' for ''0.90'' in par. (5).
Subsec. (b)(3). Pub. L. 92-603, Sec. 135(b)(2), substituted ''and
1980, the rate shall be 1.25 percent'' for ''1980, 1981, 1982,
1983, 1984, and 1985, the rate shall be 1.0 percent''.
Subsec. (b)(4). Pub. L. 92-603, Sec. 135(b)(2), substituted
''1981, 1982, 1983, 1984, and 1985, the rate shall be 1.35 percent;
and'' for ''1986, 1987, 1988, 1990, 1991, and 1992, the rate shall
be 1.1 percent; and''.
Subsec. (b)(5). Pub. L. 92-603, Sec. 135(b)(2), substituted
''December 31, 1985, the rate shall be 1.45 percent'' for
''December 31, 1992, the rate shall be 1.2 percent''.
1971 - Subsec. (a)(4). Pub. L. 92-5 substituted ''with respect to
wages received during the calendar years 1973, 1974, and 1975, the
rate shall be 5.0 percent; and'' for ''with respect to wages
received after December 31, 1972, the rate shall be 5.0 percent''.
Subsec. (a)(5). Pub. L. 92-5 added par. (5).
1968 - Subsec. (a)(1) to (4). Pub. L. 90-248, Sec. 109(a)(2),
substituted ''1968'' and ''3.8'' for ''1966'' and ''3.85'' in par.
(1) and ''1969 and 1970'' and ''4.2'' for ''1967 and 1968'' and
''3.9'' in par. (2), struck out reference to calendar years 1969
and 1970 from par. (3) and substituted ''4.6'' and ''4.4'', and
substituted ''5.0'' for ''4.85'' in par. (4).
Subsec. (b)(1) to (5). Pub. L. 90-248, Sec. 109(b)(2), struck out
par. (1) provision for employee rate of 0.35 percent of wages
received with respect to employment during calendar year 1966,
redesignated pars. (2) to (6) as (1) to (5), struck out reference
to ''1967'' in such par. (1) and increased the rate by 0.10 percent
to 0.60, 0.65, 0.70, 0.80, and 0.90 in pars. (1) to (5),
respectively.
1965 - Pub. L. 89-97, Sec. 321(b), divided the total tax imposed
under the entire section upon income through a tax equal to
percentages of wages into two separate taxes by dividing the
section into subsecs. (a) and (b), with subsec. (a) reflecting the
tax for old-age, survivors, and disability insurance and subsec.
(b) reflecting the tax for hospital insurance, but, in the case of
subsec. (b), without regard to the provisions of section 3121(b)(9)
insofar as it relates to employees; increased from 4 1/8 percent to
4.20 percent the rate of total tax imposed by the entire section
upon wages received during calendar year 1966 (resulting from a tax
of 3.85 percent under subsec. (a) and 0.35 percent under subsec.
(b)), increased from 4 1/8 percent to 4.40 percent the rate of
total tax imposed by the entire section upon wages received during
calendar year 1967 (resulting from a tax of 3.9 percent under
subsec. (a) and 0.50 percent under subsec. (b)), reduced from 4 5/8
percent to 4.40 percent the rate of total tax imposed by the entire
section upon wages received during calendar year 1968, (resulting
from a tax of 3.9 percent under subsec. (a) and 0.50 percent under
subsec. (b)), increased from 4 5/8 percent to 4.90 percent the rate
for calendar years 1969, 1970, 1971, and 1972 (resulting from a tax
of 4.4 percent under subsec. (a) and 0.50 percent under subsec.
(b)), increased from 4 5/8 percent to 5.40 percent the rate for
calendar years 1973, 1974, and 1975, (resulting from a tax of 4.85
percent under subsec. (a) and 0.55 percent under subsec. (b)),
increased from 4 5/8 percent to 5.45 percent the rate for calendar
years 1976, 1977, 1978, and 1979 (resulting from a tax of 4.85
percent under subsec. (a) and 0.60 percent under subsec. (b)),
increased from 4 5/8 percent to 5.55 percent the rate for calendar
years 1980 through 1986 (resulting from a tax of 4.85 percent under
subsec. (a) and 0.70 percent under subsec. (b)), and increased the
rate for calendar years after Dec. 31, 1986, to 5.65 percent
(resulting from a tax of 4.85 percent under subsec. (a) and 0.80
percent under subsec. (b)).
Subsec. (b). Pub. L. 89-97, Sec. 111(c)(5), struck out '', but
without regard to the provisions of paragraph (9) thereof insofar
as it relates to employees'' after ''as defined in section
3121(b)''.
1961 - Pub. L. 87-64 increased rate of tax for calendar year 1962
from 3 to 3 1/8 percent, calendar years 1963 to 1965, inclusive,
from 3 1/2 to 3 5/8 percent, calendar years 1966 and 1967 from 4 to
4 1/8 percent, calendar year 1968 from 4 to 4 5/8 percent, and for
calendar years after December 31, 1968, from 4 1/2 to 4 5/8
percent.
1958 - Pub. L. 85-840 increased rate of tax by substituting
provisions imposing a tax of 2 1/2% for calendar year 1959, 3% for
calendar years 1960 to 1962, 3 1/2% for calendar years 1963 to
1965, 4% for calendar years 1966 to 1968, and 4 1/2% for calendar
years beginning after Dec. 31, 1968, for provisions which imposed a
tax of 2 1/4% for calendar years 1957 to 1959, 2 3/4% for calendar
years 1960 to 1964, 3 1/4% for calendar years 1965 to 1969, 3 3/4%
for calendar years 1970 to 1974, and 4 1/4% for calendar years
beginning after Dec. 31, 1974.
1956 - Act Aug. 1, 1956, increased rate of tax with respect to
wages received during calendar years 1957 to 1959, and for all
calendar years thereafter, by one-quarter percent.
1954 - Act Sept. 1, 1954, increased the 3 1/4 percent rate of tax
for the calendar year 1970 and subsequent years to 3 1/2 percent
for calendar years 1970 to 1974 and 4 percent for 1975 and
subsequent years.
EFFECTIVE DATE OF 1983 AMENDMENT
Section 123(a)(3) of Pub. L. 98-21 provided that: ''The
amendments made by this subsection (amending this section and
section 3111 of this title) shall apply to remuneration paid after
December 31, 1983.''
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-216 applicable with respect to
remuneration paid or received, and taxable years beginning, after
1977, see section 104 of Pub. L. 95-216, set out as a note under
section 1401 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1903(d) of Pub. L. 94-455, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''The
amendments made by this section (see Tables for classification of
section 1903 of Pub. L. 94-455) shall apply with respect to wages
paid after December 31, 1976, except that the amendments made to
chapter 22 of the Internal Revenue Code of 1986 (formerly I.R.C.
1954) (section 3201 et seq. of this title) shall apply with respect
to compensation paid for services rendered after December 31,
1976.''
EFFECTIVE DATE OF 1973 AMENDMENT
Amendment by Pub. L. 93-233 applicable only with respect to
remuneration paid after December 31, 1973, see section 6(c) of Pub.
L. 93-233, set out as a note under section 1401 of this title.
EFFECTIVE DATE OF 1972 AMENDMENTS
Amendment by Pub. L. 92-603 applicable only with respect to
remuneration paid after Dec. 31, 1972, see section 135(c) of Pub.
L. 92-603, set out as a note under section 1401 of this title.
Amendment by Pub. L. 92-336 applicable only with respect to
remuneration paid after December 31, 1972, see section 204(c) of
Pub. L. 92-336, set out as a note under section 1401 of this title.
EFFECTIVE DATE OF 1971 AMENDMENT
Section 204(b) of Pub. L. 92-5 provided that: ''The amendments
made by subsection (a)(1) (amending this section) shall apply only
with respect to taxable years beginning after December 31, 1971.
The remaining amendments made by this section (amending section
3111 of this title) shall apply only with respect to remuneration
paid after December 31, 1971.''
EFFECTIVE DATE OF 1968 AMENDMENT
Amendment by Pub. L. 90-248 applicable only with respect to
remuneration paid after Dec. 31, 1967, see section 109(c) of Pub.
L. 90-248, set out as a note under section 1401 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by section 111(c)(5) 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 the Railroad
Retirement Tax Act (section 3201 et seq. of this title) provides
for a maximum amount of monthly compensation taxable under such Act
during all months of such calendar year equal to one-twelfth of
maximum wages which Federal Insurance Contributions Act (section
3101 et seq. of this title) provides may be counted for such
calendar year, see section 111(e) of Pub. L. 89-97, set out as an
Effective Date note under section 1395i-1 of Title 42, The Public
Health and Welfare.
Amendment by section 321(b) of Pub. L. 89-97 applicable with
respect to remuneration paid after December 31, 1965, see section
321(d) of Pub. L. 89-97, set out as a note under section 1401 of
this title.
EFFECTIVE DATE OF 1961 AMENDMENT
Amendment by Pub. L. 87-64 applicable with respect to
remuneration paid after Dec. 31, 1961, see section 201(d) of Pub.
L. 87-64, set out as a note under section 1401 of this title.
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-840 applicable with respect to
remuneration paid after Dec. 31, 1958, see section 401(d) of Pub.
L. 85-840, set out as a note under section 1401 of this title.
EFFECTIVE DATE OF 1956 AMENDMENT
Amendment by act Aug. 1, 1956, applicable with respect to
remuneration paid after Dec. 31, 1956, see section 202(d) of such
act Aug. 1, 1956, set out as a note under section 1401 of this
title.
PENALTIES AND INTEREST NOT ASSESSED FOR FAILURE TO MAKE TIMELY
PAYMENT DURING PERIOD JANUARY 1, 1982, TO JUNE 30, 1982, OF TAXES
ATTRIBUTABLE TO AMENDMENTS BY PUB. L. 97-123
Pub. L. 97-123, Sec. 3(f), Dec. 29, 1981, 95 Stat. 1663; Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''Notwithstanding any other provision of law, no penalties or
interest shall be assessed on account of any failure to make timely
payment of taxes, imposed by sections 3101, 3111, 3201(b), 3211, or
3221(b) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954)
with respect to payments made for the period beginning January 1,
1982, and ending June 30, 1982, to the extent that such taxes are
attributable to this section (or the amendments made by this
section) (amending sections 3121 and 3231 of this title and section
409 of Title 42, The Public Health and Welfare, and enacting
provisions set out as notes under section 3121 of this title) and
that such failure is due to reasonable cause and not to willful
neglect.''
REFERENCES TO SOCIAL SECURITY ACT
Section 402 of act Sept. 1, 1954, as amended by act Oct. 22,
1986, Pub. L. 99-514, Sec. 2, 100 Stat. 2095, provided that:
''References in the Internal Revenue Code of 1939 (former Title 26,
Internal Revenue Code), the Internal Revenue Code of 1986 (formerly
I.R.C. 1954), the Railroad Retirement Act of 1937, as amended
(section 231 et seq. of Title 45, Railroads), or any other law of
the United States to any section or subdivision of a section of the
Social Security Act (section 301 et seq. of Title 42, The Public
Health and Welfare) redesignated by this Act shall be deemed to
refer to such section or subdivision of a section as so
redesignated.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 24, 275, 406, 1402, 3102,
3121, 3125, 3126, 3127, 3201, 3211, 3231, 3306, 3502, 6051, 6053,
6205, 6413, 6521, 6652 of this title; title 2 sections 658a, 1503;
title 5 sections 8334, 8422; title 22 section 4071e; title 42
sections 401, 409, 418, 429, 910, 911, 1395i, 1395i-2; title 45
section 231e; title 50 section 2021.
