History of Federal Individual Income Bottom and Top Bracket Rates

Historical Income Tax Rates & Brackets

Tax Rates 1

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
2 1.5
4,000
46
500,000

1925-28
2 1?
4,000
25
100,000

1929
2 4?
4,000
24
100,000

1930-31
2 1?
4,000
25
100,000

1932-33
4
4,000
63
1,000,000

1934-35
3 4
4,000
63
1,000,000

1936-39
3 4
4,000
79
5,000,000

1940
3 4.4
4,000
81.1
5,000,000

1941
3 10
2,000
81
5,000,000

1942-434
3 19
2,000
88
200,000

1944-45
23
2,000
5 94
200,000

1946-47
19
2,000
5 86.45
200,000

1948-49
16.6
4,000
5 82.13
400,000

1950
17.4
4,000
5 91
400,000

1951
20.4
4,000
5 91
400,000

1952-53
22.2
4,000
5 92
400,000

1954-63
20
4,000
5 91
400,000

1964
16
1,000
77
400,000

1965-67
14
1,000
70
200,000

1968
14
1,000
6 75.25
200,000

1969
14
1,000
6 77
200,000

1970
14
1,000
6 71.75
200,000

1971
14
1,000
7 70
200,000

1972-78
814
1,000
7 70
200,000

1979-80
814
2,100
7 70
212,000

1981
8 9 13.825
2,100
7 9 69.125
212,000

1982
8 12
2,100
50
106,000

1983
8 11
2,100
50
106,000

1984
8 11
2,100
50
159,000

1985
8 11
2,180
50
165,480

1986
8 11
2,270
50
171,580

1987
8 11
3,000
38.5
90,000

1988
8 15
29,750
1028
29,750

1989
8 15
30,950
1028
30,950

1990
8 15
32,450
1028
32,450

1991
8 15
34,000
31
82,150

1992
8 15
35,800
31
86,500

1993
8 15
36,900
39.6
250,000

1994
8 15
38,000
39.6
250,000

1995
8 15
39,000
39.6
256,500

1996
8 15
40,100
39.6
263,750

1997
8 15
41,200
39.6
271,050

1998
8 15
42,350
39.6
278,450

1999
8 15
43,050
39.6
283,150

2000
8 15
43,850
39.6
288,350





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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)] 1944-45 –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 taxable 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 by the phaseout, producing a 33 percent effective rate.

Source: Joint Committee on Taxation, Overview of Present Law and Economic Analysis Relating to Marginal Tax Rates and the President’s Individual Income Tax Rate Proposals (JCX-6-01), March 6, 2001.