Income Tax Rates Over Time

The above interactive chart shows the difference in rates over time using data from.

Income tax rates over time. Once the flat tax barrier is breached marginal tax rates at all real income levels tend to rise over time. The flat income tax rate there is 5 0. In 1944 the top rate peaked at 94 percent on taxable income over 200 000 2 5 million in today s dollars 3. I wouldn t be surprised if a fair a number of voters in illinois understood that.

Federal individual income tax rates history nominal dollars income years 1913 2013 nominal. Those fabled 90 percent tax rates only bit at incomes over 200 000 the equivalent of more than 2 million in today s dollars. In 1986 the top marginal income tax rate was 50 percent and the top 1 percent paid 25 8 percent of all income taxes. Download toprate historical pdf 8 91 kb.

The taxes we pay depend on two things. Similar attempts to impose a graduated rate structure in massachusetts have also failed. That s a high tax rate. Historical highest marginal personal income tax rates 1913 to 2020.

Here s a look at income tax rates and brackets over the years. Download toprate historical xlsx 12 15 kb. From then until the early 60s tax rates have gone up and then slowly declined until the abrupt. As greenberg notes the tax may have only applied to 10 000 families.

Individual income taxes started in 1913 when the 16th amendment to the constitution was passed. You can change your cookie settings at any time. The 1950s 1960s and 1970s. 2021 tax rates and income brackets use these.

Tax rate over but not over tax rate over but not over tax rate over but not over tax rate over but not over 10 0 0 17 400 10 0 0 8 700 10 0 0 8 700 10 0 0 12 400. Then the internal revenue service adjusts the income brackets each year usually in late october or early november based on inflation. Us tax rates have changed wildly since 1913 when the current federal income tax program was first introduced. Over the next three decades the top federal income tax rate remained high never dipping below 70 percent.