Top Rate Applies to Top Rate on Married Taxable Top Rate on Year Regular Income Income Over: Capital Gains 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 rate |
| 1997-2000** | 39.6% (40.8%) | 280,300 | 20% (21.2%) | 20% (21.2% maximum rate) |
| 2001** | 39.1% (40.3%) | 297,350 | 20% (21.2%) | " |
| 2002** | 38.6% (39.8%) | 307,050 | 20% (21.2%) | " |
| 2003-05** | 35% (36.1%) | 319,100 | 15% (16.1%) | Capital gains rate also applies to dividends |
| 2006-07** | 35% (35.7%) | 338,525 | 15% (15.7%) | " |
| 2008** | 35% (35.4%) | 351,250 | 15% (15.4%) | " |
| 2009** | 35% (35.4%) | 360,050 | 20% (20.4%) | Dividends return to regular tax rates |
| 2010 | 35% | 369,050 | 20% | Note: All Bush tax cuts expire after 2010 |
| 2011 on | 39.6% (40.8%) | 378,250 | 20% (21.2%) | 20% (21.2% maximum rate) |
| *1988-90 | 28% | 31,050 | 28% | |
| detail | 33% | 75,050 | 33% | |
| 28% | 155,780 | 28% |
**Rates in parentheses include an additional tax on Adjusted Gross Income (phased out starting in 2006; repealed in 2010). Notes: The definition of taxable income varied very substantially over the years. Taxable income is much less than actual income. Starting points for the top rate (indexed) are averages when multiple years are shown after 1987. Further Note: 1970-81 rates reflect a lower top rate on earned income (second figure listed).
CITIZENS FOR TAX JUSTICE , MAY 2004