§ 3402. Income tax collected at source

Subsec. (m)(3)(B) to (E). Pub. L. 92–178, § 208(f)(3), struck out subpars. (B) and (C) providing that only one certificate be in effect and for termination of effectiveness of certificate and redesignated subpars. (D) and (E) as (B) and (C), respectively.

1969—Subsec. (a)(1). Pub. L. 91–172, § 805(a), (b)(2), substituted new sets of tables 1 to 8 for application to wages paid after Dec. 31, 1969, and before July 1, 1970, and after June 30, 1970, and before January 1, 1972, for the tables applicable to wages paid before July 13, 1968, and after Dec. 31, 1969.

Pub. L. 91–53, § 6(a)(1), substituted “December 31, 1969” for “July 31, 1969”.

Pub. L. 91–36, § 2(a)(1), substituted “July 31, 1969” for “June 30, 1969”.

Subsec. (a)(2). Pub. L. 91–172, § 805(a), substituted a set of tables 1 to 8 for application to wages paid after June 30, 1970, and before Jan. 1, 1971, for the tables applicable to wages paid after June 30, 1970, and before Jan. 1, 1970.

Pub. L. 91–53, § 6(a)(2), substituted “January 1, 1970” for “August 1, 1969”.

Pub. L. 91–36, § 2(a)(2), substituted “August 1, 1969” for “July 1, 1969”.

Subsec. (a)(3) to (5). Pub. L. 91–172, § 805(a), added sets of tables applicable, respectively, to wages paid after Dec. 31, 1970, and before Jan. 1, 1972, after Dec. 31, 1971, and before Jan. 1, 1973, and after Dec. 31, 1972.

Subsec. (b)(1). Pub. L. 91–172, § 805(b)(1)–(4), revised withholding rates effective with respect to wages paid after Dec. 31, 1969, and before July 1, 1970, for the period after June 30, 1970, and before Jan. 1, 1972, during 1972, and after 1972.

Subsec. (c)(1). Pub. L. 91–172, § 805(c)(1), substituted provisions authorizing employer to deduct and withhold tax determinable according to tables prescribed by the Secretary or his delegate for provisions under which the employer was authorized to deduct and withhold tax only according to tables set out.

Subsec. (c)(6). Pub. L. 91–172, § 805(c)(2), substituted provisions for determination of amount deductible according to tables prescribed by the Secretary or his delegate and for computation of wages and amounts of income tax after Dec. 31, 1969, for provisions for determination of such wages and amounts of income tax after July 13, 1968, and before Jan. 1, 1970.

Pub. L. 91–53, § 6(a)(3), substituted “January 1, 1970” for “August 1, 1969”.

Pub. L. 91–36, § 2(a)(3), substituted “August 1, 1969” for “July 1, 1969”.

Subsec. (h). Pub. L. 91–172, § 805(d), redesignated existing pars. (1) to (3) as subpars. (A) to (C) of par. (1), and added pars. (2) to (4).

Subsec. (m)(1). Pub. L. 91–172, § 805(e)(2), substituted $750 for $700 in the material preceding subpar. (A) and in subpar. (B) substituted 15 per cent for 10 per cent of the first $7,500 and 17 per cent of remainder of the estimated wages.

Subsec. (m)(2)(A). Pub. L. 91–172, § 805(e)(2), inserted amount of standard deduction as an alternative limit in cl. (i), and substituted the determinable additional deductions for provisions referring to an employee who did not show such deductions on his return.

Subsec. (m)(2)(B). Pub. L. 91–172, § 805(e)(2), struck out limit on aggregate amount.

Subsec. (m)(2)(C), (D). Pub. L. 91–172, § 805(e)(1), (2), added subpar. (C). Former subpar. (C) redesignated (D)

Subsec. (n). Pub. L. 91–172, § 805(f)(1), added subsec. (n).

Subsecs. (o), (p). Pub. L. 91–172, § 805(g), added subsecs. (o) and (p).

1968—Subsec. (a). Pub. L. 90–364, § 102(c)(1), designated existing Tables 1 to 8 as constituting par. (1), inserted provisions preceding existing Table 1–8 so as to limit their application to the case of wages paid on or before the 15th day after the date of the enactment of the Revenue and Expenditure Control Act of 1968 or after June 30, 1969, and added par. (2).

Subsec. (c)(6). Pub. L. 90–364, § 102(c)(2), added par. (6).

1966—Subsec. (a). Pub. L. 89–368, § 101(a), struck out reference to subsections (j) and (k) and substituted provisions establishing separate tables for single persons and for married persons in each of eight payroll period categories each containing six graduated withholding rates ranging from 14 to 30 percent for provisions placing the rate at a fixed 14 percent.

Subsec. (b)(1). Pub. L. 89–368, § 101(b), increased amounts set out for one withholding exemption for each of the payroll period categories from “$13.00”, “$26.00”, “$28.00”, “$56.00”, “$167.00”, “$333.00”, “$667.00”, and “$1.80” to “$13.50”, “$26.90”, “$29.20”, “$58.30”, “$175.00”, “$350.00”, “$700.00”, and “$1.90” respectively.

Subsec. (c)(1). Pub. L. 89–368, § 101(c), replaced existing tables with separate tables for employees who are married and for employees who are not married covering weekly, biweekly, semimonthly, monthly, and daily or miscellaneous pay periods and reflecting increased and graduated withholding rates.

Subsec. (f)(1)(F), (3)(B). Pub. L. 89–368, § 101(e)(1), (3), added par. (1)(F) and, in par. (3)(B), changed definition of “status determination date” from January 1 and July 1 of each year to January 1, May 1, July 1, and October 1 of each year.

Subsec. (l). Pub. L. 89–368, § 101(d), added subsec. (l).

Subsec. (m). Pub. L. 89–368, § 101(e)(2), added subsec. (m).

1965—Subsec. (a). Pub. L. 89–97, § 313(d)(3), substituted “subsections (j) and (k)” for “subsection (j)”.

Subsec. (h)(3). Pub. L. 89–97, § 313(d)(4), inserted “(and, in the case of tips referred to in subsection (k), within 30 days thereafter)” after “quarter” first place it appears.

Subsec. (k). Pub. L. 89–212 inserted “or section 3202 (c)(2)” and “or section 3202(a)”.

Pub. L. 89–97, § 313(d)(5), added subsec. (k).

1964—Subsec. (a). Pub. L. 88–272, § 302(a), reduced tax from 18% to 14%.

Subsec. (c)(1). Pub. L. 88–272, § 302(b), substituted new tables reflecting lowered withholding rates.

1961—Subsec. (f)(6). Pub. L. 87–256 added par. (6).

1955—Subsec. (a). Act Aug. 9, 1955, § 2(a), inserted “(except as provided in subsection (j))” after “upon such wages”.

Subsec. (j). Act Aug. 9, 1955, § 2(b), added subsec. (j).

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Amendment by Pub. L. 117–2 applicable to taxable years beginning after Dec. 31, 2020, see section 9611(c)(1) of Pub. L. 117–2, set out as a note under section 24 of this title.

Effective Date of 2017 Amendment

Amendment by section 11011(b)(4) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11011(e) of Pub. L. 115–97, set out as a note under section 62 of this title.

Amendment by section 11041(c)(1), (2)(B)–(E) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, with allowance for Secretary of the Treasury to administer this section for taxable years beginning before Jan. 1, 2019, without regard to the amendments made by subsecs. (a) and (c) of Pub. L. 115–97, see section 11041(f) of Pub. L. 115–97, set out as a note under section 151 of this title.

Amendment by section 11051(b)(2)(B) of Pub. L. 115–97 applicable to any divorce or separation instrument (as defined in former section 71(b)(2) of this title as in effect before Dec. 22, 2017) executed after Dec. 31, 2018, and to such instruments executed on or before Dec. 31, 2018, and modified after Dec. 31, 2018, if the modification expressly provides that the amendment made by section 11051 of Pub. L. 115–97 applies to such modification, see section 11051(c) of Pub. L. 115–97, set out as a note under section 61 of this title.

Amendment by section 13603(b)(2) of Pub. L. 115–97 applicable to stock attributable to options exercised, or restricted stock units settled, after Dec. 31, 2017, see section 13603(f)(1) of Pub. L. 115–97, set out as a note under section 83 of this title.

Effective Date of 2011 Amendment

Pub. L. 112–56, title I, § 102(b), Nov. 21, 2011, 125 Stat. 712, provided that: “The amendment made by this section [amending this section] shall apply to payments made after December 31, 2011.”

Effective Date of 2006 Amendment

Pub. L. 109–222, title V, § 511(b), May 17, 2006, 120 Stat. 365, as amended by Pub. L. 111–5, div. B, title I, § 1511, Feb. 17, 2009, 123 Stat. 355, provided that: “The amendment made by this section [amending this section] shall apply to payments made after December 31, 2011.”

Effective Date of 2001 Amendment

Amendment by Pub. L. 107–16 applicable to amounts paid after the 60th day after June 7, 2001, and references to income brackets and rates of tax in such amendment to be applied without regard to section 1(i)(1)(D) of this title, see section 101(d)(2) of Pub. L. 107–16, set out as an Effective and Termination Dates of 2001 Amendment note under section 1 of this title.

Effective Date of 1994 Amendment

Pub. L. 103–465, title VII, § 701(b), Dec. 8, 1994, 108 Stat. 4996, provided that: “The amendment made by this section [amending this section] shall apply to payments made after December 31, 1994.”

Amendment by section 702(a) of Pub. L. 103–465 applicable to payments made after Dec. 31, 1996, see section 702(d) of Pub. L. 103–465, set out as a note under section 3304 of this title.

Effective Date of 1992 Amendments

Pub. L. 102–486, title XIX, § 1934(b), Oct. 24, 1992, 106 Stat. 3032, provided that: “The amendment made by this section [amending this section] applies to payments received after December 31, 1992.”

Pub. L. 102–486, title XIX, § 1942(b), Oct. 24, 1992, 106 Stat. 3036, provided that: “The amendments made by subsection (a) [amending this section] shall apply to payments of winnings after December 31, 1992.”

Amendment by Pub. L. 102–318 applicable, except as otherwise provided, to distributions after Dec. 31, 1992, see section 522(d) of Pub. L. 102–318, set out as a note under section 401 of this title.

Effective Date of 1988 Amendment

Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

Effective Date of 1987 Amendment

Pub. L. 100–203, title X, § 10302(b), Dec. 22, 1987, 101 Stat. 1330–429, provided that: “The amendment made by subsection (a) [amending this section] shall apply to certificates furnished after the day 30 days after the date of the enactment of this Act [Dec. 22, 1987].”

Effective Date of 1986 Amendment

Amendment by section 104(b)(15) of Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 151(a) of Pub. L. 99–514, set out as a note under section 1 of this title.

Amendment by section 1301(j)(8) of Pub. L. 99–514 applicable to bonds issued after Aug. 15, 1986, except as otherwise provided, see sections 1311 to 1318 of Pub. L. 99–514, set out as an Effective Date; Transitional Rules note under section 141 of this title.

Amendment by section 1303(b)(4) of Pub. L. 99–514 effective Oct. 22, 1986, see section 1311(f) of Pub. L. 99–514, as amended, set out as an Effective Date; Transitional Rules note under section 141 of this title.

Effective Date of 1985 Amendment

Pub. L. 99–44, § 6(d), May 24, 1985, 99 Stat. 79, provided that: “The amendment made by section 3 [amending this section] shall take effect on January 1, 1985.”

Effective Date of 1983 Amendment

Amendment by Pub. L. 98–67 applicable with respect to payments made after Dec. 31, 1983, see section 110(a) of Pub. L. 98–67, set out as a note under section 31 of this title.

Effective Date of 1982 Amendment

Pub. L. 97–248, title III, § 317(b), Sept. 3, 1982, 96 Stat. 610, provided that: “The amendments made by subsection (a) [amending this section] shall apply to payments made after December 31, 1983.”

Amendment by section 334(d) of Pub. L. 97–248 applicable to payments or other distributions made after Dec. 31, 1982, see section 334(e) of Pub. L. 97–248, set out as an Effective Date note under section 3405 of this title.

Effective Date of 1981 Amendment

Pub. L. 97–34, title I, § 101(f)(2), Aug. 13, 1981, 95 Stat. 185, provided that: “The amendments made by subsection (e) [amending this section] shall apply to remuneration paid after September 30, 1981; except that the amendment made by subsection (e)(5) [amending this section] shall apply to remuneration paid after December 31, 1981.”

Effective Date of 1980 Amendment

Pub. L. 96–601, § 4(f), Dec. 24, 1980, 94 Stat. 3498, provided that: “The amendments made by this section [amending this section and section 6051 of this title] shall apply to payments made on or after the first day of the first calendar month beginning more than 120 days after the date of the enactment of this Act [Dec. 24, 1980].”

Effective Date of 1978 Amendment

Pub. L. 95–600, title I, § 101(f)(2), Nov. 6, 1978, 92 Stat. 2771, provided that: “The amendments made by subsection (e) [amending this section] shall apply to remuneration paid after December 31, 1978.”

Pub. L. 95–600, title I, § 102(d)(2), Nov. 6, 1978, 92 Stat. 2771, provided that: “The amendments made by subsection (c) [amending this section] shall apply with respect to remuneration paid after December 31, 1978.”

Amendment by section 601(b)(2) of Pub. L. 95–600 applicable with respect to corporations chartered after Dec. 31, 1978, and before Jan. 1, 1984, see section 601(d) of Pub. L. 95–600, set out as a note under section 172 of this title.

Effective Date of 1977 Amendment

Pub. L. 95–30, title I, § 106(b), May 23, 1977, 91 Stat. 141, provided that: “The amendments made by section 105 [amending this section] shall apply to wages paid after April 30, 1977.”

Pub. L. 95–30, title IV, § 405(b), May 23, 1977, 91 Stat. 156, provided that: “The amendments made by this section [amending this section] apply to payments made after April 30, 1977.”

Effective Date of 1976 Amendment

Amendment by section 401(d) of Pub. L. 94–455 applicable to wages paid after Sept. 14, 1976, see section 401(e) of Pub. L. 94–455, set out as a note under section 32 of this title.

Pub. L. 94–455, title XII, § 1207(f)(3), Oct. 4, 1976, 90 Stat. 1708, provided that: “The amendments made by subsection (d) [amending this section] shall apply to payments of winnings made after the 90th day after the date of the enactment of this Act [Oct. 4, 1976].”

Effective and Termination Dates of 1975 Amendments

Amendment by section 2(b)(2) of Pub. L. 94–164 applicable to taxable years ending after Dec. 31, 1975 and before Jan. 1, 1977, see section 2(g) of Pub. L. 94–164, set out as an Effective Date of 1975 Amendment note under section 32 of this title.

Pub. L. 94–12, title II, § 209(c), Mar. 29, 1975, 89 Stat. 35, as amended by Pub. L. 94–164, § 5(a)(2); Pub. L. 94–331, § 3(a)(2); Pub. L. 94–396, § 2(b); Pub. L. 94–414, § 3(a)(2), provided that: “The amendments made by sections 202(b) and 205 [amending this section] shall apply to wages paid after April 30, 1975, and before October 1, 1976.”

Effective Date of 1971 Amendment

Pub. L. 92–178, title II, § 208(i), Dec. 10, 1971, 85 Stat. 517, provided that: “(1) The amendments made by this section [amending this section] (other than subsection (h)) shall apply with respect to wages paid after January 15, 1972. “(2) The amendments made by subsection (h) [amending this section] shall apply with respect to wages paid after December 31, 1971, and before January 16, 1972.”

Effective Date of 1969 Amendments

Pub. L. 91–172, title VIII, § 805(h), Dec. 30, 1969, 83 Stat. 709, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “(1) The amendments made by subsections (a), (b), (c), (d), and (e) [amending this section] shall apply with respect to remuneration paid after December 31, 1969. “(2) The amendment made by subsection (f) [amending this section and section 6051 of this title] applies to wages paid after April 30, 1970. “(3) Subsection (o) of section 3402 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], added by subsection (g) of this subsection, shall apply to payments made after December 31, 1970. Subsection (p) of such section 3402, added by subsection (g) of this section, shall apply to payments made after June 30, 1970.”

Pub. L. 91–53, § 6(b), Aug. 7, 1969, 83 Stat. 96, provided that: “The amendments made by this section [amending this section] shall apply with respect to wages paid after July 31, 1969, and before January 1, 1970.”

Pub. L. 91–36, § 2(b), June 30, 1969, 83 Stat. 42, provided that: “The amendments made by subsection (a) [amending this section] shall apply with respect to wages paid after June 30, 1969.”

Effective Date of 1966 Amendment

Pub. L. 89–368, title I, § 101(e)(6), Mar. 15, 1966, 80 Stat. 62, provided that: “The amendments made by paragraphs (1) and (2) of this subsection [amending this section] shall apply only with respect to remuneration paid after December 31, 1966, but only with respect to withholding exemptions based on estimation years beginning after such date.”

Pub. L. 89–368, title I, § 101(g), Mar. 15, 1966, 80 Stat. 62, provided that: “The amendments made by this section (other than subsection (e) [amending this section]) shall apply only with respect to remuneration paid after April 30, 1966.”

Effective Date of 1965 Amendments

Amendment by Pub. L. 89–212 effective only with respect to tips received after 1965, see section 6 of Pub. L. 89–212, set out as a note under section 3201 of this title.

Amendment by Pub. L. 89–97 applicable only with respect to tips received by employees after 1965, see section 313(f) of Pub. L. 89–97, set out as an Effective Date note under section 6053 of this title.

Effective Date of 1964 Amendment

Pub. L. 88–272, title III, § 302(d), Feb. 26, 1964, 78 Stat. 146, provided that: “The amendments made by subsections (a) and (b) of this section [amending this section] shall apply with respect to remuneration paid after the seventh day following the date of the enactment of this Act [Feb. 26, 1964]. The amendment made by subsection (c) of this section [amending section 1441 of this title] shall apply with respect to payments made after the seventh day following the date of the enactment of this Act.”

Effective Date of 1961 Amendment

Amendment by Pub. L. 87–256 applicable with respect to wages paid after Dec. 31, 1961, see section 110(h)(4) of Pub. L. 87–256, set out as a note under section 3401 of this title.

Effective Date of 1955 Amendment

Act Aug. 9, 1955, ch. 666, § 3, 69 Stat. 605, provided that: “The amendment made by section 2 [amending this section] shall be applicable only with respect to remuneration paid after the date of enactment of this Act [Aug. 9, 1955].”

Savings Provision

For provisions that nothing in amendment by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title.

Withholding

Pub. L. 119–21, title VII, § 70201(i), July 4, 2025, 139 Stat. 173, provided that: “The Secretary of the Treasury (or the Secretary’s delegate) shall modify the procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 for taxable years beginning after December 31, 2025, to take into account the deduction allowed under section 224 of such Code (as added by this Act).”

Pub. L. 119–21, title VII, § 70202(f), July 4, 2025, 139 Stat. 175, provided that: “The Secretary of the Treasury (or the Secretary’s delegate) shall modify the procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 for taxable years beginning after December 31, 2025, to take into account the deduction allowed under section 225 of such Code (as added by this Act).”

Plan Amendments Not Required Until January 1, 1994

For provisions directing that if any amendments made by subtitle B [§§ 521–523] of title V of Pub. L. 102–318 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1994, see section 523 of Pub. L. 102–318, set out as a note under section 401 of this title.

Withholding Allowances To Reflect New Rate Schedules

Pub. L. 99–514, title XV, § 1581(a), Oct. 22, 1986, 100 Stat. 2765, provided that: “The Secretary of the Treasury or his delegate shall modify the withholding schedules and withholding exemption certificates under section 3402 of the Internal Revenue Code of 1954 [now 1986] to better approximate actual tax liability under the amendments made by this Act [see Tables for classification].”

Employer’s Responsibility Upon Failure of Employee To File Revised Withholding Allowance Certificate Before Oct. 1, 1987

Pub. L. 99–514, title XV, § 1581(c), Oct. 22, 1986, 100 Stat. 2766, as amended by Pub. L. 100–647, title I, § 1015(p), Nov. 10, 1988, 102 Stat. 3572, provided that: “If an employee has not filed a revised withholding allowance certificate before October 1, 1987, the employer shall withhold income taxes from the employee’s wages—“(1) as if the employee claimed 1 withholding allowance, if the employee checked the ‘single’ box on the employee’s previous withholding allowance certificate, or “(2) as if the employee claimed 2 withholding allowances, if the employee checked the ‘married’ box on the employee’s previous withholding allowance certificate. The preceding sentence shall not apply if its application would result in an increase in the number of withholding allowances for the employee.”

Failure To Deduct and Withhold Under a Duty Created or Increased by Tax Reform Act of 1976

Pub. L. 95–30, title III, § 304, May 23, 1977, 91 Stat. 152, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “No person shall be liable in respect of any failure to deduct and withhold under section 3402 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (relating to income tax collected at source) on remuneration paid before January 1, 1977, to the extent that the duty to deduct and withhold was created or increased by any provision of the Tax Reform Act of 1976 [Pub. L. 94–455].”

Wages Paid During 1972 and After 1972

Pub. L. 91–172, title VIII, § 805(b)(3), (4), Dec. 30, 1969, 83 Stat. 704, which provided for section 3402(b)(1) withholding rates of 13.50; 26.90; 29.20; 58.30; 175.00; 350.00; 700.00; and 1.90, effective with respect to wages during 1972, and withholding rates of 14.40; 28.80; 31.30; 62.50; 187.50; 375.00; 750.00; and 2.10, effective with respect to wages paid after 1972, was repealed by Pub. L. 92–178, title II, § 208(b)(2), Dec. 10, 1971, 85 Stat. 516.

Transitional Determination Status Date

Pub. L. 89–368, title I, § 101(f), Mar. 15, 1966, 80 Stat. 62, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “Notwithstanding section 3402(f)(3)(B) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], a withholding exemption certificate furnished the employer after the date of the enactment of this Act [Mar. 15, 1966] and before May 1, 1966, shall take effect with respect to the first payment of wages made on or after May 1, 1966, or the 10th day after the date on which such certificate is furnished to the employer, whichever is later, and at the election of the employer such certificate may be made effective with respect to any payment of wages made on or after the date on which such certificate is furnished.”

Meaning of Terms

Act Aug. 9, 1955, ch. 666, § 1, 69 Stat. 605, provided that: “The terms used in this Act [amending subsecs. (a) and (j) of this section] shall have the same meaning as when used in the Internal Revenue Code.”