Converted by KMK from the PDF version from Citizens For Tax Justice

 

Top Federal Income Tax Rates on Regular Income and Capital Gains since 1916

Top Rate Applies to Top Rate on Married Taxable Top Rate on Year Regular Income Income Over: Capital Gains Notes on Capital Gains Treatment

1916 15% $ 2,000,000 15% Capital gains taxed the same as regular income
1917 67% 2,000,000 67% "
1918 77% 1,000,000 77% "
1919-21 73% 1,000,000 73% "
1922 58% 200,000 12.5% Max rate of 12.5%
1923 43.5% 200,000 12.5% "
1924 46% 500,000 12.5% "
1925-28 25% 100,000 12.5% "
1929 24% 100,000 12.5% "
1930-31 25% 100,000 12.5% "
1932-33 63% 1,000,000 12.5% "
1934-35 63% 1,000,000 31.5% Sliding exclusion of 70%>10 yrs; 0%<1 yr.
1936-37 78% 2,000,000 39% "
1938-40 78% 2,000,000 30% Excl. 50%>2yrs; 67% 18-24mo; 0%<18mo; 30%Max
1941 80% 2,000,000 30% Excl. 50%>2yrs; 67% 18-24mo; 0%<18mo; 30%Max
1942-43 88% 200,000 25% Exclusion 50% > 6 months; 25% maximum
1944-45 94% 200,000 25% Exclusion 50% > 6 months; 25% maximum
1946-47 86.5% 200,000 25% Exclusion 50% > 6 months; 25% maximum
1948-49 82.1% 200,000 25% Exclusion 50% > 6 months; 25% maximum
1950 84.4% 200,000 25% Exclusion 50% > 6 months; 25% maximum
1951-64 91% 200,000 25% Exclusion 50% > 6 months; 25% maximum
1965-67 70% 200,000 25% Exclusion 50% > 6 months; 25% maximum
1968 75.3% 200,000 26.9% Vietnam War 10% surtax for part of year
1969 77% 200,000 27.5% Vietnam War 10% surtax
1970 73.5% 200,000 32.3% Transition on CG, Vietnam War 5% surtax; minimum tax effects
1971 70%/60% 200,000 34.3% Transition on CG & 50% top rate on earnings; minimum tax effects
1972-75 70%/50% 200,000 36.5% 50% exclusion, minimum tax effects
1976-77 70%/50% 203,200 39.9% 50% exclusion, minimum tax effects
1978 70%/50% 203,200 39% 50% exclusion, minimum tax effects; late year reduction
1979-80 70%/50% 215,400 28% 60% exclusion
1981 70%/50% 215,400 23.7% 50% or 60% exclusion, etc.,transition
1982-86 50% 215,400 20% 60% exclusion
1987 38.5% 192,930 28% 28% maximum rate
1988-90 28%/33% * see below 28%/33% Realized gains taxed same as other income
1991-92** 31% (31.9%) 84,300 28% (28.9%) 28% (28.9%) maximum rate
1993-96** 39.6% (40.8%) 255,100 28% (29.2%) 28% (29.2%) maximum rate
1997-2000** 39.6% (40.8%) 280,300 20% (21.2%) 20% (21.2% maximum rate)
2001** 39.1% (40.3%) 297,350 20% (21.2%) "
2002** 38.6% (39.8%) 307,050 20% (21.2%) "
2003-05** 35% (36.1%) 319,100 15% (16.1%) Capital gains rate also applies to dividends
2006-07** 35% (35.7%) 338,525 15% (15.7%) "
2008** 35% (35.4%) 351,250 15% (15.4%) "
2009** 35% (35.4%) 360,050 20% (20.4%) Dividends return to regular tax rates
2010 35% 369,050 20% Note: All Bush tax cuts expire after 2010
2011 on 39.6% (40.8%) 378,250 20% (21.2%) 20% (21.2% maximum rate)
*1988-90 28% 31,050 28%
detail 33% 75,050 33%
28% 155,780 28%

**Rates in parentheses include an additional tax on Adjusted Gross Income (phased out starting in 2006; repealed in 2010). Notes: The definition of taxable income varied very substantially over the years. Taxable income is much less than actual income. Starting points for the top rate (indexed) are averages when multiple years are shown after 1987. Further Note: 1970-81 rates reflect a lower top rate on earned income (second figure listed).

CITIZENS FOR TAX JUSTICE , MAY 2004