
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC3101]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                      Subtitle C--Employment Taxes
 
             CHAPTER 21--FEDERAL INSURANCE CONTRIBUTIONS ACT
 
                     Subchapter A--Tax on Employees
 
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))--


  In cases of wages received during:           The rate shall be:

    1984, 1985, 1986, or 1987........  5.7 percent
    1988 or 1989.....................  6.06 percent
    1990 or thereafter...............  6.2 percent.


(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 to taxes or contributions for similar 
purposes under the social security system of such foreign country.

(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

    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.


                               Amendments

    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.''

                  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; title 45 section 231e; title 50 section 2021.
