Income Tax Rates Through The Years

Before the 2013 to 2014 tax year the bigger personal allowance was based on age instead of date of birth.

Income tax rates through the years. What s new for illinois income tax. Here are the current federal income tax rates. 10 25 rates for most people and 35 in the top bracket over 379 000. Average federal tax rates for all households by comprehensive household income quintile.

The economic recovery tax act of 1981 slashed the highest rate from 70 to 50 percent and indexed the brackets for inflation. In 1986 the top marginal income tax rate was 50 percent and the top 1 percent paid 25 8 percent of all income taxes. You can view income tax rates and allowances for previous tax years. Here s a look at income tax rates and brackets over the years.

Tax brackets and rates for the 2021 tax year as well as for 2019 and previous years are elsewhere on this page. Download average rate historical all pdf 15 19 kb download average rate historical all xlsx 25 11 kb. Then the internal revenue service adjusts the income brackets each year usually in late october or early november based on inflation. Then the tax reform act of 1986 claiming that it was a two tiered flat tax expanded the tax base and dropped the top rate to 28 percent for tax years beginning in 1988.

Us tax rates have changed wildly since 1913 when the current federal income tax program was first introduced. 2020 federal income tax brackets for taxes due in april 2021 or in october 2021. Individual income tax rates for prior years. Tax year ending rate.

1993 saw a tax hike on the wealthy via two new brackets at the top and then 2001 through 2003 saw a series of tax cuts that lowered the tax brackets as follows. 4 the hype here was that the broader base contained fewer deductions but brought in. 2015 through june 30 2017. Congress sets the rates and a baseline income amount that falls into them when a tax law is created or changed.

2021 tax rates and income brackets use these. The above interactive chart shows the difference in rates over time using data from. Thirty years later the top marginal income tax rate had fallen to 39 6 percent but the top 1 percent s share of income taxes had risen to 37 3 percent.