Top US Marginal Income Tax Rates, 1913--2003

Introduction

This is a table of the top marginal tax rate faced by married couples for most of the last century in the US.
Note that these are top marginal rates only, not average effective rates. That is,

• the rate is not an average rate (total tax paid divided by total income), but a marginal rate (the rate paid on dollars of income over the "top bracket," listed below as "Taxable income over--");
• the rate does not take into account all possible exemptions and deductions, so taxes actually paid may have been lower than these nominal rates indicate.

The table is limited to married couples merely to make the presentation simpler.

Historical rates (married couples, filing jointly)

Table

Tax year	Top marginal tax rate (%)	Top marginal tax rate (%) on earned income, if different<1>	Taxable income over--
1913	7		500,000
1914	7		500,000
1915	7		500,000
1916	15		2,000,000
1917	67		2,000,000
1918	77		1,000,000
1919	73		1,000,000
1920	73		1,000,000
1921	73		1,000,000
1922	58		200,000
1923	43.5		200,000
1924	46		500,000
1925	25		100,000
1926	25		100,000
1927	25		100,000
1928	25		100,000
1929	24		100,000
1930	25		100,000
1931	25		100,000
1932	63		1,000,000
1933	63		1,000,000
1934	63		1,000,000
1935	63		1,000,000
1936	79		5,000,000
1937	79		5,000,000
1938	79		5,000,000
1939	79		5,000,000
1940	81.1		5,000,000
1941	81		5,000,000
1942	88		200,000
1943	88		200,000
1944	94 <2>		200,000
1945	94 <2>		200,000
1946	86.45 <3>		200,000
1947	86.45 <3>		200,000
1948	82.13 <4>		400,000
1949	82.13 <4>		400,000
1950	84.36		400,000
1951	91 <5>		400,000
1952	92 <6>		400,000
1953	92 <6>		400,000
1954	91 <7>		400,000
1955	91 <7>		400,000
1956	91 <7>		400,000
1957	91 <7>		400,000
1958	91 <7>		400,000
1959	91 <7>		400,000
1960	91 <7>		400,000
1961	91 <7>		400,000
1962	91 <7>		400,000
1963	91 <7>		400,000
1964	77		400,000
1965	70		200,000
1966	70		200,000
1967	70		200,000
1968	75.25		200,000
1969	77		200,000
1970	71.75		200,000
1971	70	60	200,000
1972	70	50	200,000
1973	70	50	200,000
1974	70	50	200,000
1975	70	50	200,000
1976	70	50	200,000
1977	70	50	203,200
1978	70	50	203,200
1979	70	50	215,400
1980	70	50	215,400
1981	69.125	50	215,400
1982	50		85,600
1983	50		109,400
1984	50		162,400
1985	50		169,020
1986	50		175,250
1987	38.5		90,000
1988	28 <8>		29,750 <8>
1989	28 <8>		30,950 <8>
1990	28 <8>		32,450 <8>
1991	31		82,150
1992	31		86,500
1993	39.6		89,150
1994	39.6		250,000
1995	39.6		256,500
1996	39.6		263,750
1997	39.6		271,050
1998	39.6		278,450
1999	39.6		283,150
2000	39.6		288,350
2001	39.1		297,350
2002	38.6		307,050
2003	35		311,950

Graph

This graph is a plot of year (first column in the table) against the corresponding top marginal rate (second column in the table) (in blue). Where the top marginal rate on earned income differs (1971--1981), it is also plotted (in red). 

Comments

For a more detailed discussion, see the references below. Note that

• the table does not address the tax treatment of capital gains;
• the table does not take into account the alternative minimum tax or its predecessor, the minimum tax; and,
• care should be taken in comparing the income levels at which the top rate applies, not only because of the effects of inflation, but because the definition of the income base has varied over time.

Data source

Most of the data were taken from reference [3]. Some of the footnote text was drawn and modified from reference [2].

Footnotes

<1>	This figure is cited when the top marginal rate for earned income differs from that for unearned income.
<2>	For 1944-1945, the highest tax rate was subject to a maximum effective rate limitation equal to 90% of statutory "net income."
<3>	For 1946-1947, the highest rate was subject to a maximum effective rate limitation equal to 85.5% of statutory "net income."
<4>	For 1948-1949, the highest tax rate was subject to a maximum effective rate limitation equal to 77% of statutory "net income."
<5>	For 1951, the highest tax rate was subject to a maximum effective rate limitation equal to 87.2% of statutory "net income."
<6>	For 1952-1953, the highest tax rate was subject to a maximum effective rate limitation equal to 88% of statutory "net income."
<7>	For 1954-1963, the highest tax rate was subject to a maximum effective rate limitation equal to 87% of statutory "taxable income."
<8>	For 1988-1990, some taxpayers faced a 33% marginal tax rate in an income bracket above the one cited for the 28% rate. However, the marginal rate returned to 28% above this 33% bracket. That is, for all sufficiently high incomes, 28% was the marginal rate.

References

[1]	"2003 tax rate schedules," in Internal Revenue Service, 2003 Tax Table
[2]	Robert A. Wilson and David E. Jordan, "Personal exemptions and individual income tax rates, 1913-2002" (Rev. 6-02), in Internal Revenue Service, Statistics of Income Bulletin (Publication 1136), Spring 2002, pp. 216-225
[3]	"Table A.--U.S. individual income tax: personal exemptions and lowest and highest bracket tax rates, and tax base for regular tax, tax years 1913-2003" (Rev. 4-2003), in Internal Revenue Service, Statistics of Income Bulletin (Publication 1136), Winter 2002-2003
[4]	"Tax brackets by year," under "Tax Facts," Urban-Brookings Tax Policy Center