Publication of the Tier 2 Tax Rates

---
identifier: "/us/fr/2024-27487"
source: "fr"
legal_status: "authoritative_unofficial"
title: "Publication of the Tier 2 Tax Rates"
title_number: 0
title_name: "Federal Register"
section_number: "2024-27487"
section_name: "Publication of the Tier 2 Tax Rates"
positive_law: false
currency: "2024-11-25"
last_updated: "2024-11-25"
format_version: "1.1.0"
generator: "[email protected]"
agency: "Treasury Department"
document_number: "2024-27487"
document_type: "notice"
publication_date: "2024-11-25"
agencies:
  - "Treasury Department"
  - "Internal Revenue Service"
fr_citation: "89 FR 93036"
fr_volume: 89
fr_action: "Notice."
---


#  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 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  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).