[Company Logo Image]

 

Home Up Contents SEARCH 

[Under Construction]

Home
Location
Services
Why an Enrolled Agent
Certifying Acpt Agent
Free Services
Email Advice
Track Your Tax Refund
Organizer
QuickBooks
Tax Glossary
Newsletters
Neat Facts & Stats
1913 US Form 1040
Calculators
Questions & Library
Partner Profiles
Important Dates
Reasons to Call Us
Links Of Interest
Privacy & Disclosure

History of Federal Individual Income Tax Rates - U.S.A.
 

Bottom and Top Brackets
[In dollar amounts unless otherwise specified]

 
 
 
 

Tax Rates1

Bottom bracket

Top bracket

Calendar
Year

Rate
(percent)

Taxable income up to

Rate
(percent)

Taxable income over

         
1913-15

1

$20,000

7

$500,000

1916

2

20,000

15

2,000,000

1917

2

2,000

67

2,000,000

1918

6

4,000

77

1,000,000

1919-20

4

4,000

73

1,000,000

1921

4

4,000

73

1,000,000

1922

4

4,000

56

200,000

1923

3

4,000

56

200,000

1924

21.5

4,000

46

500,000

1925-28

21?

4,000

25

100,000

1929

24?

4,000

24

100,000

1930-31

21?

4,000

25

100,000

1932-33

4

4,000

63

1,000,000

1934-35

34

4,000

63

1,000,000

1936-39

34

4,000

79

5,000,000

1940

34.4

4,000

81.1

5,000,000

1941

310

2,000

81

5,000,000

1942-433

319

2,000

88

200,000

1944-45

23

2,000

594

200,000

1946-47

19

2,000

586.45

200,000

1948-49

16.6

4,000

582.13

400,000

1950

17.4

4,000

591

400,000

1951

20.4

4,000

591

400,000

1952-53

22.2

4,000

592

400,000

1954-63

20

4,000

591

400,000

1964

16

1,000

77

400,000

1965-67

14

1,000

70

200,000

1968

14

1,000

675.25

200,000

1969

14

1,000

677

200,000

1970

14

1,000

671.75

200,000

1971

14

1,000

770

200,000

1972-78

814

1,000

770

200,000

1979-80

814

2,100

770

212,000

1981

8 913.825

2,100

7 9 69.125

212,000

1982

812

2,100

50

106,000

1983

811

2,100

50

106,000

1984

811

2,100

50

159,000

1985

811

2,180

50

165,480

1986

811

2,270

50

171,580

1987

811

3,000

38.5

90,000

1988

815

29,750

1028

29,750

1989

815

30,950

1028

30,950

1990

815

32,450

1028

32,450

1991

815

34,000

31

82,150

1992

815

35,800

31

86,500

1993

815

36,900

39.6

250,000

1994

815

38,000

39.6

250,000

1995

815

39,000

39.6

256,500

1996

815

40,100

39.6

263,750

1997

815

41,200

39.6

271,050

1998

815

42,350

39.6

278,450

1999

815

43,050

39.6

283,150

2000

815

43,850 39.6 288,350
2001 81115 45,200 39.1 297,350
2002

810

12,000

38.6

307,050

2003 810 14,000 35 311,950
2004 810 14,300 35 319,100
2005 810 14,600 35 326,450
2006

 810

15,100

35

336,550

2007 est

 810

  35 349,700
 

1  Taxable income excludes zero bracket amount from 1977 through 1986.  Rates shown apply only to married persons filing joint returns beginning in 1948.  Does not include either the add on minimum tax on preference items (1970-1982) or the alternative minimum tax (1979-present).  Also, does not include the effects of the various tax benefit phase-outs (e.g. the personal exemption phase-out).  From 1922 through 1986 and from 1991 forward, lower rates applied to long-term capital gains.

2  After earned-income deduction equal to 25 percent of earned income.

3  After earned-income deduction equal to 10 percent of earned income.

4 Exclusive of Victory Tax.

5  Subject to the following maximum effective rate limitations.
[year and maximum rate (in percent)] 1994-45 - 90; 1946-47 - 85.5; 1948-49 - 77.0; 1950 - 87.0; 1951 - 87.2;  1952-53 - 88.0; 1954-63 - 87.0.

6  Includes surcharge of 7.5 percent in 1968, 10 percent in 1969, and 2.6 percent in 1970.

7 Earned income was subject to maximum marginal rates of 60 percent in 1971 and 50 percent from 1972  through 1981.

8 Beginning in 1975, a refundable earned-income credit is allowed for low-income individuals.

9  After tax credit is 1.25 percent against regular tax.

10 The benefit of the first rate bracket is eliminated by an increased rate above certain thresholds.  The phase-out range of the benefit of the first rate bracket was as follows:  Taxable income between $71,900 and $149,250 in 1988; taxable income between $74,850 and $155,320 in 1989; and t axable income between $78,400 and $162,770 in 1990.  The phase-out of the benefit the first rate bracket was repealed for taxable years beginning after December 31, 1990. This added 5 percentage points to the marginal rate for those affected by the phaseout, producing a 33 percent effective rate.

11 Includes a 1/2 year 10% transition rate in the form of an advance refund credit of $300 to $600 based on prior year tax. This was only for 2001.

Source: Congressional Joint Committee on Taxation

 

 
 


 

  [Back] [Home] [Up] [Next]

Disclaimer
We do not offer legal advice. All information provided on this website is for informational purposes only and is not a substitute for proper legal advice. If you have legal questions, we recommend that you seek the advice of legal professionals.

IRS Circular 230 Disclaimer: To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer under the Internal Revenue Code, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein.

Copyright 2000-2014 Wink Tax Services / Wink Inc.
Last modified: October 07, 2014