2024-27487. Publication of the Tier 2 Tax Rates

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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 ( print page 93037) Service, 1111 Constitution Avenue NW, Washington, DC 20224, telephone number [phone] (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).