Increase in employment tax rate

(a) Wages (1) Employees Subsection (a) of section 3101 of the Internal Revenue Code of 1986 is amended to read as follows: (a) Old-Age, survivors, and disability insurance (1) In general In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the applicable percentage of the wages (as defined in section 3121(a)) received by him with respect to employment (as defined in section 3121(b)). (2) Applicable percentage For purposes of paragraph (1), the term applicable percentage means the percentage determined under the following table: The applicable In case of wages received during: percentage shall be: 2026 6.25 percent 2027 6.30 percent 2028 6.35 percent 2029 6.40 percent 2030 6.45 percent 2031 or thereafter 6.50 percent.. (2) Employers Subsection (a) of section 3111 of such Code is amended to read as follows: (a) Old-Age, survivors, and disability insurance (1) In general In addition to other taxes, there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to the applicable percentage of the wages (as defined in section 3121(a)) paid by him with respect to employment (as defined in section 3121(b)). (2) Applicable percentage For purposes of paragraph (1), the term applicable percentage means the percentage determined under the following table: The applicable In case of a taxable year beginning during calendar year: percentage shall be: 2026 6.25 percent 2027 6.30 percent 2028 6.35 percent 2029 6.40 percent 2030 6.45 percent 2031 or thereafter 6.50 percent.. (b) Self-Employment Subsection (a) of section 1401 of such Code is amended to read as follows: (a) Old-Age, survivors, and disability insurance (1) In addition to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax equal to the applicable percentage of the amount of the self-employment income for such taxable year. (2) Applicable percentage For purposes of paragraph (1), the term applicable percentage means the percentage determined under the following table: The applicable In case of a taxable year beginning during calendar year: percentage shall be: 2026 12.5 percent 2027 12.6 percent 2028 12.7 percent 2029 12.8 percent 2030 12.9 percent 2031 or thereafter 13.0 percent.. (c) Effective date The amendments made by this section shall apply with respect to remuneration received, and taxable years beginning after, December 31, 2025.