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Historical Corporate Income Tax Rates & Brackets, 1909-2020


2018-2020      All taxable income 21 For tax years beginning after 2017, the Tax Cuts and Jobs Act (P.L. 115-97) replaced the graduated corporate tax structure with a flat 21% corporate tax rate. 1993-2017      First $50,000 15 The Revenue Reconciliation Act of 1993  increased the maximum corporate tax rate to 35% for corporations with
taxable income over $10 million.
Corporations with taxable income over $15
million are subject to an additional tax of
3% of the excess over $15 million, or
$100,000, whichever is smaller        $50,000-$75,000 25          $75,000-$100,000 34          $100,000-$335,000 39          $335,000-$10,000,000 34          $10,000,000-$15,000,000 35          $15,000,000-$18,333,333 38          Over $18,333,333 35   1988-1992      First $50,000 15          $50,000-$75,000 25          $75,000-$100,000 34          $100,000-$335,000 39          Over $335,000 34   1987      First $25,000 15 The Tax Reform Act of 1986 (TRA86) established a new rate structure effective for Tax Year 1988 and made the rates for Transition Year 1987 an average of the pre-TRA rates for 1986 and the post-TRA rates for 1988.        $25,000-$50,000 16.5 A new “alternative minimum tax” (AMT) replaced the add-on minimum tax, effective in 1987.  It required a calculation of an alternative measure of taxable income that reduced or eliminated many tax preference items.  The tax was 20 percent of the excess of this “alternative minimum taxable income” (AMTI) over $40,000.  The $40,000 exemption was reduced by 25 percent of the excess of AMTI over $150,000.  AMT in excess of regular tax could be carried over as a credit against regular tax in future years.  In 1998, “small” corporations (generally, those with average gross receipts of less than $5 million) were exempted from the AMT.        $50,000-$75,000 27.5          $75,000-$100,000 37 The maximum tax rate on capital gains was capped at 34 percent for 1987, which was to be the rate on the highest corporate tax bracket in 1988 and after, according to TRA86.  The maximum capital gain rate was raised to 35 percent when the highest corporate rate bracket was increased in 1993.        $100,000-$335,000 42.5          $335,000-$1,000,000 40          $1,000,000-$1,405,000 42.5          Over $1,405,000 40   1984-1986 First $25,000 15     $25,000-$50,000 18     $50,000-$75,000 30 The maximum tax rate on long-term capital gains was 28 percent.   $75,000-$100,000 40     $100,000-$1,000,000 46     $1,000,000-$1,405,000 51     Over $1,405,000 46   1983 First $25,000 15 Beginning in 1983, incorporated professional practices (“personal service corporations”) have been taxed on all taxable income at the corporate tax rate applicable to the highest income bracket.   $25,000-$50,000 18     $50,000-$75,000 30 The maximum tax rate on long-term capital gains was 28 percent.   $75,000-$100,000 40     Over $100,000 46   1982 First $25,000 16     $25,000-$50,000 19     $50,000-$75,000 30 The maximum tax rate on long-term capital gains was 28 percent.   $75,000-$100,000 40     Over $100,000 46   1979-1981 First $25,000 17     $25,000-$50,000 20     $50,000-$75,000 30 The maximum tax rate on long-term capital gains was 28 percent.   $75,000-$100,000 40     Over $100,000 46   1975-1978 First $25,000 20     $25,000-$50,000 22     Over $50,000 48 The holding period for long-term capital gain treatment of assets was increased from 6 months to 9 months in 1977 and 12 months in 1978.  The rate remained at 30 percent.         1971-1974 First $25,000 22     Over $25,000 48 The maximum tax rate on long-term capital gains was increased to 30 percent. 1970 First $25,000 22.55 Includes a 2.5 percent Vietnam War surcharge.   Over $25,000 49.2 The maximum tax rate on long-term capital gains was increased to 28 percent. 1968-1969 First $25,000 24.2 From 1969 through 1986, corporations were also subject to an “add-on minimum tax” on certain “tax preference” items (such as percentage depletion, accelerated depreciation) above a certain amount.  For Tax Years 1969 through 1976, the tax was 10 percent of tax preferences in excess of $30,000; after 1976, the tax was 15 percent of preferences in excess of the greater of $10,000 or regular income tax.   Over $25,000 52.8 Rates include the Vietnam War surcharge of 10 percent. 1965-1967 First $25,000 22     Over $25,000 48   1964 First $25,000 22     Over $25,000 50   1952-1963 First $25,000 30 From April 1, 1954, through Calendar Year 1969, the maximum tax rate on capital gains was 25 percent.   Over $25,000 52           1951 First $25,000 28.75 These rates reflect a tax increase (for the Korean War), effective March 31, 1951.  The maximum capital gain tax rate was also increased to 26 percent.   Over $25,000 50.75   1950 First $25,000 23 An excess profits tax was also in effect from July 1950 through Calendar Year 1953.  The tax was 30 percent of an adjusted profits figure reduced by credits for the level of prewar profits.  It was not offset against income tax, but the sum of income and excess profits taxes was capped at a given percentage of income (from 62 percent to 70 percent).   Over $25,000 42 Beginning with Tax Year 1942, gains on the sale of assets held for more than 6 months (long-term capital gains) could be treated separately from other taxable income and taxed at a maximum rate of 25 percent. 1946-1949 Taxable income $50,000 or less:   These rates are the sum of the “normal tax” rates and the “surtax” rates, which actually applied to slightly different definitions of taxable income.        First $5,000 21          Next $15,000 23          Next $5,000 25          Next $25,000 53 Beginning with Tax Year 1942, gains on the sale of assets held for more than 6 months (long-term capital gains) could be treated separately from other taxable income and taxed at a maximum rate of 25 percent.   Taxable income over $50,000 38   1942-1945 Taxable income $50,000 or less:   These rates are the sum of the “normal tax” rates and the “surtax” rates, which actually applied to slightly different definitions of taxable income.        First $5,000 25          Next $15,000 27 Beginning with Tax Year 1942, gains on the sale of assets held for more than 6 months (long-term capital gains) could be treated separately from other taxable income and taxed at a maximum rate of 25 percent.        Next $5,000 29          Next $25,000 53     Taxable income over $50,000 40   1941 Taxable income $38,461.54 or less:   These rates are the sum of the “normal tax” rates and the “surtax” rates, which actually applied to slightly different definitions of taxable income.        First $5,000 21          Next $15,000 23          Next $5,000 25          Next $13,461.54 44     Taxable income over $38,461.54 31   1940 Taxable income $31,964.30 or less:   From June 1940 to the end of 1945, a tax on profits in excess of average prewar earnings was also imposed.  It was taken into account, as either a deduction or a credit, for the income tax and the other excess profits tax.        First $5,000 14.85 The rates for 1940 include extra “defense tax” rates that are integrated with the regular rates in later years.        Next $15,000 16.5          Next $5,000 18.7          Next $6,964.30 38.3     Taxable income over $31,964.30, not over $38,565.84:            First $5,000 15.4          Next $15,000 16.9          Next $5,000 18.9          Next $13,565.84 36.9     Taxable income over $38,565.84 24   1938-1939 Taxable income $25,000 or less:            First $5,000 12.5          Next $15,000 14          Next $5,000 16     Taxable income over $25,000 19   1936-1937      First $2,000 8 An additional surtax ranging from 7 percent to 27 percent was imposed on undistributed profits.        Over $2,000, not over  $15,000 11          Over $15,000, not over $40,000  13          Over $40,000 15   1932-1935      All taxable income 13.75 An additional “declared value” excess profits tax, based on profits in excess of a percentage of the value of corporate stock, was in effect from 1933 through 1945.  It was a deduction for income tax purposes. 1930-1931      First $3,000 0          Over $3,000 12   1929      First $3,000 0          Over $3,000 11   1928      First $3,000 0          Over $3,000 12   1926-1927      First $2,000 0          Over $2,000 13.5   1925      First $2,000 0          Over $2,000 13   1922-1924      First $2,000 0          Over $2,000 12.5   1919-1921      First $2,000 0          Over $2,000 10   1918      First $2,000 0          Over $2,000 12   1917      All taxable income 6 An additional tax on “excess profits” and/or “war profits” was in effect from 1917 to 1922.  It was allowed as a deduction for computing income tax. 1916      All taxable income 2   1913 (March 1)-1915      All taxable income 1   1909-1913 (February 28)      First $5,000  0          Over  $5,000 1  



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