Yes, members of Congress pay taxes. Federal income tax, Social Security, Medicare, and state income tax all come out of their paychecks under the same rules that apply to any other salaried worker, and they file returns by the same April 15 deadline as everyone else.1Internal Revenue Service. When to File The tax code contains a handful of provisions written specifically for legislators, but those provisions mostly deny deductions or prevent double taxation. They don’t create special breaks.
What Comes Out of a Congressional Paycheck
Rank-and-file House and Senate members earn $174,000 a year. Leadership positions such as the majority and minority leaders earn $193,400.2U.S. Senate. Senate Salaries 1789 to Present Every dollar of that pay counts as gross income under federal law, which defines gross income broadly to include all compensation for services.3Office of the Law Revision Counsel. 26 USC 61 – Gross Income Defined
Withholding works the ordinary way. Federal income tax comes out based on the W-4 the member submits, Social Security tax is withheld at 6.2%, and Medicare tax at 1.45%. A member with significant outside earnings can also hit the additional 0.9% Medicare surcharge on earned income above $200,000.4Office of the Law Revision Counsel. 26 USC 3101 – Rate of Tax No preferential brackets apply. A senator in the 37% bracket owes 37%.
State Income Tax and the D.C. Residence Rule
Members owe state income tax to the state they represent, assuming it levies one. A representative from Texas or Florida pays no state income tax on the congressional salary; a representative from California or New York pays the full state rate. That difference reflects where members live and vote, not any tax advantage tied to the job.
One statute does exist specifically to protect members from a tax problem their work creates. Because they must keep a place to sleep in Washington while Congress is in session, 4 U.S.C. ยง 113 bars D.C. and any other jurisdiction from treating a member as a resident for income tax purposes solely because of that apartment.5Office of the Law Revision Counsel. 4 USC 113 – Residence of Members of Congress for State Income Tax Laws Only the state a member actually represents can tax the congressional pay. This isn’t an exemption. It prevents two jurisdictions from taxing the same income, and members from states that levy an income tax still owe every dollar their home state would normally collect.
The Deduction That No Longer Exists
For decades, members could deduct certain living expenses tied to maintaining a residence in Washington. That deduction is gone. The Tax Cuts and Jobs Act of 2017 eliminated most unreimbursed employee business expense deductions starting in 2018, and the tax code now states directly that amounts spent by members on living expenses “shall not be deductible for income tax purposes.”6Office of the Law Revision Counsel. 26 USC 162 – Trade or Business Expenses Rent on a D.C. apartment comes out of after-tax income, the same as it does for anyone else living near their workplace.
Outside Income, Investments, and Campaign Money
Members can earn some outside income, but the cap is 15% of the annual rate of basic pay for Level II of the Executive Schedule.7Office of the Law Revision Counsel. 5 USC 13143 – Outside Earned Income Limitation For 2026, that ceiling is $33,855.8House Committee on Ethics. FAQs About Outside Employment Whole categories of paid work are also off-limits: any profession involving a fiduciary relationship (law, accounting, real estate, insurance, financial services), paid board service, business or political consulting, and teaching without written ethics committee approval.9House Committee on Ethics. Restrictions on Outside Employment Applicable to Members and Senior Staff Whatever a member does earn on the side, whether book royalties or speaking fees, appears on the tax return as ordinary income and is taxed the same as any other wages or self-employment earnings.
Investment income gets no special treatment either. Capital gains, dividends, and interest that members report on their annual financial disclosures fall under the same brackets, holding-period rules, and preferential long-term rates available to any other taxpayer. Nothing more, nothing less.
Campaign money can’t be used to pay any of this. Federal Election Commission rules forbid using campaign funds for personal expenses, defined as any obligation that would exist whether or not the person held office or ran for election.10Federal Election Commission. Personal Use A personal tax bill fits that definition. Members pay their federal and state income taxes, property taxes on their homes, and sales taxes on their purchases out of their own money, at the same rates their constituents pay.
Benefits With Tax Consequences
Two benefits do affect the tax picture, but in ways that mirror ordinary employees.
Under the Affordable Care Act, members and designated staff buy health insurance through a Small Business Health Options Program exchange rather than the standard Federal Employees Health Benefits program.11Centers for Medicare and Medicaid Services. Members of Congress FAQ The government contributes toward the premium as their employer, and that contribution is excluded from taxable wages the same way any private-sector employer’s premium share is excluded.
Members also have access to the Thrift Savings Plan, the federal version of a 401(k). Traditional TSP contributions defer income tax until withdrawal in retirement. The 2026 elective deferral limit is $24,500, with an additional $8,000 catch-up for participants age 50 and older, or $11,250 for those turning 60 through 63.12Thrift Savings Plan. 2026 TSP Contribution Limits The government matches up to 5% of basic pay, structured as dollar-for-dollar on the first 3% and 50 cents on the dollar for the next 2%.13Thrift Savings Plan. Contribution Types These are the same limits and match rules available to any federal employee.
Travel reimbursements for official trips between Washington and a member’s district follow standard accountable-plan rules. Properly documented, substantiated expenses are not taxable; anything paid out that exceeds actual costs, or is spent on personal purposes, gets treated as wages and lands on the W-2.14Internal Revenue Service. Publication 463 (2025), Travel, Gift, and Car Expenses
Put together, the picture is straightforward. Members of Congress pay the taxes their salaries generate, at the rates their income and residence dictate, with no shortcut around either.