Top Federal Income Tax Rates on Regular Income and Capital Gains since 1916
Year
Notes on Capital Gains Treatment
1916
15%
$ 2,000,000
15%
Capital gains taxed the same as regular income
1917
67%
2,000,000
67%
"
1918
77%
1,000,000
77%
"
1919-21
73%
1,000,000
73%
"
1922
58%
200,000
12.5%
Max rate of 12.5%
1923
43.5%
200,000
12.5%
"
1924
46%
500,000
12.5%
"
1925-28
25%
100,000
12.5%
"
1929
24%
100,000
12.5%
"
1930-31
25%
100,000
12.5%
"
1932-33
63%
1,000,000
12.5%
"
1934-35
63%
1,000,000
31.5%
Sliding exclusion of 70%>10 yrs; 0%<1 yr.
1936-37
78%
2,000,000
39%
"
1938-40
78%
2,000,000
30%
Excl. 50%>2yrs; 67% 18-24mo; 0%<18mo; 30%Max
1941
80%
2,000,000
30%
Excl. 50%>2yrs; 67% 18-24mo; 0%<18mo; 30%Max
1942-43
88%
200,000
25%
Exclusion 50% > 6 months; 25% maximum
1944-45
94%
200,000
25%
Exclusion 50% > 6 months; 25% maximum
1946-47
86.5%
200,000
25%
Exclusion 50% > 6 months; 25% maximum
1948-49
82.1%
200,000
25%
Exclusion 50% > 6 months; 25% maximum
1950
84.4%
200,000
25%
Exclusion 50% > 6 months; 25% maximum
1951-64
91%
200,000
25%
Exclusion 50% > 6 months; 25% maximum
1965-67
70%
200,000
25%
Exclusion 50% > 6 months; 25% maximum
1968
75.3%
200,000
26.9%
Vietnam War 10% surtax for part of year
1969
77%
200,000
27.5%
Vietnam War 10% surtax
1970
73.5%
200,000
32.3%
Transition on CG, Vietnam War 5% surtax; minimum tax effects
1971
70%/60%
200,000
34.3%
Transition on CG & 50% top rate on earnings; minimum tax effects
1972-75
70%/50%
200,000
36.5%
50% exclusion, minimum tax effects
1976-77
70%/50%
203,200
39.9%
50% exclusion, minimum tax effects
1978
70%/50%
203,200
39%
50% exclusion, minimum tax effects; late year reduction
1979-80
70%/50%
215,400
28%
60% exclusion
1981
70%/50%
215,400
23.7%
50% or 60% exclusion, etc.,transition
1982-86
50%
215,400
20%
60% exclusion
1987
38.5%
192,930
28%
28% maximum rate
1988-90
28%/33%
* see below
28%/33%
Realized gains taxed same as other income
1991-92**
31% (31.9%)
84,300 28% (28.9%) 28% (28.9%) maximum rate
1993-96**
39.6% (40.8%)
255,100 28% (29.2%) 28% (29.2%) maximum ra