# 26 U.S.C. § 3201: Rate of tax

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s3201>. Cite pinpoints as 26 U.S.C. § 3201(a)(1).

## § 3201(a) Tier 1 tax

In addition to other taxes, there is hereby imposed on the income of each employee a tax equal to the applicable percentage of the compensation received during any calendar year by such employee for services rendered by such employee. For purposes of the preceding sentence, the term “applicable percentage” means the percentage equal to the sum of the rates of tax in effect under subsections (a) and (b) of section 3101 for the calendar year.

## § 3201(b) Tier 2 tax

In addition to other taxes, there is hereby imposed on the income of each employee a tax equal to the percentage determined under section 3241 for any calendar year of the compensation received during such calendar year by such employee for services rendered by such employee.

## § 3201(c) Cross reference

For application of different contribution bases with respect to the taxes imposed by subsections (a) and (b), see section 3231(e)(2).

## Regulations

- [Treas. Reg. § 31.3201-1](/26/reg/31.3201-1.md): Measure of employee tax. (interprets § 3201)
- [Treas. Reg. § 31.3201-2](/26/reg/31.3201-2.md): Rates and computation of employee tax. (interprets § 3201)

## Leading cases

- [BNSF Ry. Co. v. Loos, 586 U.S. 310 (2019)](https://www.courtlistener.com/opinion/9231195/bnsf-ry-co-v-loos/)

## Connections

Cites: § 3101 Rate of tax; § 3231 Definitions; § 3241 Determination of tier 2 tax rate based on average account benefits ratio

Cited by: § 72 Annuities; certain proceeds of endowment and life insurance contracts; § 1402 Definitions; § 3202 Deduction of tax from compensation; § 3231 Definitions; § 3241 Determination of tier 2 tax rate based on average account benefits ratio; § 6051 Receipts for employees; § 6053 Reporting of tips; § 6413 Special rules applicable to certain employment taxes; § 6652 Failure to file certain information returns, registration statements, etc.

Derived from: 1939 § 1500

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 431
- 1954-08-31: [Act Aug. 31, 1954, ch. 1164](/26/act/1954-ch1164.md), 68 Stat. 1040
- 1959-05-19: [Pub. L. 86-28](/26/act/86-28.md), 73 Stat. 28
- 1963-10-05: [Pub. L. 88-133](/26/act/88-133.md), 77 Stat. 221
- 1965-07-30: [Pub. L. 89-97](/26/act/89-97.md), 79 Stat. 335
- 1965-09-29: [Pub. L. 89-212](/26/act/89-212.md), 79 Stat. 861
- 1966-10-30: [Pub. L. 89-699](/26/act/89-699.md), 80 Stat. 1078
- 1966-10-30: [Pub. L. 89-700](/26/act/89-700.md), 80 Stat. 1088
- 1973-07-10: [Pub. L. 93-69](/26/act/93-69.md), 87 Stat. 162
- 1975-08-09: [Pub. L. 94-93](/26/act/94-93.md), 89 Stat. 466
- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1807
- 1981-08-13: [Pub. L. 97-34](/26/act/97-34.md), 95 Stat. 347
- 1983-08-12: [Pub. L. 98-76](/26/act/98-76.md), 97 Stat. 419
- 1987-12-22: [Pub. L. 100-203](/26/act/100-203.md), 101 Stat. 1330
- 1990-11-05: [Pub. L. 101-508](/26/act/101-508.md), 104 Stat. 1388
- 2001-12-21: [Pub. L. 107-90](/26/act/107-90.md), 115 Stat. 892
- 2014-12-19: [Pub. L. 113-295](/26/act/113-295.md), 128 Stat. 4052