Public Law 119-73 (01/23/2026)

26 U.S.C. § 531

Imposition of accumulated earnings tax

In addition to other taxes imposed by this chapter, there is hereby imposed for each taxable year on the accumulated taxable income (as defined in section 535) of each corporation described in section 532, an accumulated earnings tax equal to 20 percent of the accumulated taxable income.

Aug. 16, 1954, ch. 73668A Stat. 179Pub. L. 100–647, title I, § 1001(a)(2)(A)102 Stat. 3349Pub. L. 103–66, title XIII107 Stat. 459Pub. L. 107–16, title I, § 101(c)(4)115 Stat. 43Pub. L. 108–27, title III, § 302(e)(5)117 Stat. 764Pub. L. 112–240, title I, § 102(c)(1)(A)126 Stat. 2319(, ; , , ; , §§ 13201(b)(1), 13202(b), , , 461; , , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 112–2402013— substituted “20 percent” for “15 percent”.

Pub. L. 108–272003— substituted “equal to 15 percent of the accumulated taxable income.” for “equal to the product of the highest rate of tax under section 1(c) and the accumulated taxable income.”

Pub. L. 107–162001— substituted “equal to the product of the highest rate of tax under section 1(c) and the accumulated taxable income.” for “equal to 39.6 percent of the accumulated taxable income.”

Pub. L. 103–66, § 13202(b)1993—, substituted “39.6 percent” for “36 percent”.

Pub. L. 103–66, § 13201(b)(1), substituted “36 percent” for “28 percent”.

Pub. L. 100–6471988— amended section generally. Prior to amendment, section read as follows: “In addition to other taxes imposed by this chapter, there is hereby imposed for each taxable year on the accumulated taxable income (as defined in section 535) of every corporation described in section 532, an accumulated earnings tax equal to the sum of—

“(1) 27½ percent of the accumulated taxable income not in excess of $100,000, plus

“(2) 38½ percent of the accumulated taxable income in excess of $100,000.”

Statutory Notes and Related Subsidiaries

Effective Date of 2013 Amendment

Pub. L. 112–240section 102(d)(1) of Pub. L. 112–240section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Effective Date of 2003 Amendment

Pub. L. 108–27section 302(f) of Pub. L. 108–27section 1 of this titleAmendment by applicable, except as otherwise provided, to taxable years beginning after , see , set out as an Effective and Termination Dates of 2003 Amendment note under .

Effective Date of 2001 Amendment

Pub. L. 107–16section 101(d)(1) of Pub. L. 107–16section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as an Effective and Termination Dates of 2001 Amendment note under .

Effective Date of 1993 Amendment

Pub. L. 103–66Pub. L. 103–66section 1 of this titleAmendment by applicable to taxable years beginning after , see sections 13201(c) and 13202(c) of , set out as notes under .

Effective Date of 1988 Amendment

Pub. L. 100–647, title I, § 1001(a)(2)(B)102 Stat. 3349

“The amendment made by subparagraph (A) [amending this section] shall apply to taxable years beginning after . Such amendment shall not be treated as a change in a rate of tax for purposes of section 15 of the 1986 Code.”
, , , provided that: