Income tax in the United States
History of top rates

Income tax in the United States

Section Title: History of top rates
Table Section Text: None

History of income tax rates adjusted for inflation (1913–2013)

Number of	First Bracket	Top Bracket

Year	Brackets	Rate	Rate	Income	Adj. 2018	Comment

1913	7	1%	7%	$500,000	$12.7 million	First permanent income tax

1916	14	2%	15%	$2,000,000	$46 million

1917	21	2%	67%	$2,000,000	$39.1 million	World War I financing

1918	56	6%	77%	$1,000,000	$16.7 million

1919	56	4%	73%	$1,000,000	$14.5 million

1922	50	4%	58%	$200,000	$2.99 million

1923	50	3%	43.5%	$200,000	$2.94 million

1924	43	1.5%	46%	$500,000	$7.31 million

1925	23	1.125%	25%	$100,000	$1.43 million	Post war reductions

1929	23	0.375%	24%	$100,000	$1.46 million

1930	23	1.125%	25%	$100,000	$1.5 million

1932	55	4%	63%	$1,000,000	$18.4 million	Depression era

1936	31	4%	79%	$5,000,000	$90.3 million

1940	31	4.4%	81.1%	$5,000,000	$89.4 million

1941	32	10%	81%	$5,000,000	$85.2 million	World War II

1942	24	19%	88%	$200,000	$3.07 million	Revenue Act of 1942

1944	24	23%	94%	$200,000	$2.85 million	Individual Income Tax Act of 1944

1946	24	19%	86.45%	$200,000	$2.57 million

1948	24	16.6%	82.13%	$400,000	$4.17 million

1950	24	17.4%	84.36%	$400,000	$4.17 million

1951	24	20.4%	91%	$400,000	$3.86 million

1952	26	22.2%	92%	$400,000	$3.77 million

1954	26	20%	91%	$400,000	$3.73 million

1964	26	16%	77%	$400,000	$3.23 million	Tax reduction during Vietnam war

1965	25	14%	70%	$200,000	$1.59 million

1968	33	14%	75.25%	$200,000	$1.44 million

1969	33	14%	77%	$200,000	$1.37 million

1970	33	14%	71.75%	$200,000	$1.29 million

1971	33	14%	70%	$200,000	$1.24 million

1981	17	13.825%	69.125%	$215,400	$594 thousand	Reagan era tax cuts

1982	14	12%	50%	$85,600	$222 thousand	Reagan era tax cuts

1983	14	11%	50%	$109,400	$275 thousand

1987	5	11%	38.5%	$90,000	$198 thousand	Reagan era tax cuts

1988	2	15%	28%	$29,750	$63 thousand	Reagan era tax cuts

1991	3	15%	31%	$82,150	$151 thousand	Omnibus Budget Reconciliation Act of 1990

1993	5	15%	39.6%	$89,150	$155 thousand	Omnibus Budget Reconciliation Act of 1993

2001	5	10%	39.1%	$297,350	$421 thousand

2002	6	10%	38.6%	$307,050	$428 thousand

2003	6	10%	35%	$311,950	$425 thousand	Bush tax cuts

2013	7	10%	39.6%	$400,000	$430 thousand	American Taxpayer Relief Act of 2012

Sentence(s)

In 1988, the threshold for paying the top rate with incomes was $29,750 (equivalent to $63 thousand) paying the top rate of 28%.

final_sentence: In 1988, the threshold for paying the top rate with incomes was $29,750 (equivalent to $63 thousand) paying the top rate of 28%.