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