Bay Business Group Blog

Tax rates over the years

Tax rates are scheduled to go higher next year, with the top rate once again hitting 39.6%. For a look at tax rates over the years, here’s a partial history of our federal income tax rates for individuals since the income tax was created in 1913.

Federal Income Tax Rates Since 1913

Year              Lowest bracket    Top bracket

1913-1915               1%                   7%

1918                         6%                  73%

1923                         3%                  56%

1925-1928               1.5%                25%

1936-1939                4%                  79%

1944-1945               23%                 94%

1964                        16%                 77%

1971-1981               14%                 70%

1982-1986               12%                 50%

1988-1990               15%                 28%

1993-2000               15%                39.6%

2003-2010               10%                 35%

David Bradsher, CPA  is a Washington DC / Northern Virginia area CPA who works with small business owners and non profit leaders on a monthly basis to provide them with guidance and advice on how to grow their organizations, minimize their tax liabilities and increase their bottom line.