THE MIRROR OF MEDIA

Historical Corporate Income Tax Rates & Brackets, 1909-2020


2018-2020     All taxable revenue21For tax years starting after 2017, the Tax Cuts and Jobs Act (P.L. 115-97) changed the graduated company tax construction with a flat 21% company tax price.1993-2017     First $50,00015The Income Reconciliation Act of 1993  elevated the utmost company tax price to 35% for firms with
taxable income over $10 million.
Companies with taxable revenue over $15
million are topic to an extra tax of
3% of the surplus over $15 million, or
$100,000, whichever is smaller     $50,000-$75,00025     $75,000-$100,00034     $100,000-$335,00039     $335,000-$10,000,00034     $10,000,000-$15,000,00035     $15,000,000-$18,333,33338     Over $18,333,333351988-1992     First $50,00015     $50,000-$75,00025     $75,000-$100,00034     $100,000-$335,00039     Over $335,000341987     First $25,00015The Tax Reform Act of 1986 (TRA86) established a brand new price construction efficient for Tax Yr 1988 and made the charges for Transition Yr 1987 a median of the pre-TRA charges for 1986 and the post-TRA charges for 1988.     $25,000-$50,00016.5A brand new “various minimal tax” (AMT) changed the add-on minimal tax, efficient in 1987.  It required a calculation of an alternate measure of taxable revenue that lowered or eradicated many tax choice gadgets.  The tax was 20 p.c of the surplus of this “various minimal taxable revenue” (AMTI) over $40,000.  The $40,000 exemption was lowered by 25 p.c of the surplus of AMTI over $150,000.  AMT in extra of standard tax might be carried over as a credit score in opposition to common tax in future years.  In 1998, “small” firms (typically, these with common gross receipts of lower than $5 million) have been exempted from the AMT.     $50,000-$75,00027.5     $75,000-$100,00037The utmost tax price on capital beneficial properties was capped at 34 p.c for 1987, which was to be the speed on the best company tax bracket in 1988 and after, in response to TRA86.  The utmost capital achieve price was raised to 35 p.c when the best company price bracket was elevated in 1993.     $100,000-$335,00042.5     $335,000-$1,000,00040     $1,000,000-$1,405,00042.5     Over $1,405,000401984-1986First $25,00015$25,000-$50,00018$50,000-$75,00030The utmost tax price on long-term capital beneficial properties was 28 p.c.$75,000-$100,00040$100,000-$1,000,00046$1,000,000-$1,405,00051Over $1,405,000461983First $25,00015Starting in 1983, included skilled practices (“private service firms”) have been taxed on all taxable revenue on the company tax price relevant to the best revenue bracket.$25,000-$50,00018$50,000-$75,00030The utmost tax price on long-term capital beneficial properties was 28 p.c.$75,000-$100,00040Over $100,000461982First $25,00016$25,000-$50,00019$50,000-$75,00030The utmost tax price on long-term capital beneficial properties was 28 p.c.$75,000-$100,00040Over $100,000461979-1981First $25,00017$25,000-$50,00020$50,000-$75,00030The utmost tax price on long-term capital beneficial properties was 28 p.c.$75,000-$100,00040Over $100,000461975-1978First $25,00020$25,000-$50,00022Over $50,00048The holding interval for long-term capital achieve remedy of belongings was elevated from 6 months to 9 months in 1977 and 12 months in 1978.  The speed remained at 30 p.c.1971-1974First $25,00022Over $25,00048The utmost tax price on long-term capital beneficial properties was elevated to 30 p.c.1970First $25,00022.55Features a 2.5 p.c Vietnam Battle surcharge.Over $25,00049.2The utmost tax price on long-term capital beneficial properties was elevated to twenty-eight p.c.1968-1969First $25,00024.2From 1969 by 1986, firms have been additionally topic to an “add-on minimal tax” on sure “tax choice” gadgets (comparable to share depletion, accelerated depreciation) above a certain quantity.  For Tax Years 1969 by 1976, the tax was 10 p.c of tax preferences in extra of $30,000; after 1976, the tax was 15 p.c of preferences in extra of the larger of $10,000 or common revenue tax.Over $25,00052.8Charges embrace the Vietnam Battle surcharge of 10 p.c.1965-1967First $25,00022Over $25,000481964First $25,00022Over $25,000501952-1963First $25,00030From April 1, 1954, by Calendar Yr 1969, the utmost tax price on capital beneficial properties was 25 p.c.Over $25,000521951First $25,00028.75These charges mirror a tax improve (for the Korean Battle), efficient March 31, 1951.  The utmost capital achieve tax price was additionally elevated to 26 p.c.Over $25,00050.751950First $25,00023An extra earnings tax was additionally in impact from July 1950 by Calendar Yr 1953.  The tax was 30 p.c of an adjusted earnings determine lowered by credit for the extent of prewar earnings.  It was not offset in opposition to revenue tax, however the sum of revenue and extra earnings taxes was capped at a given share of revenue (from 62 p.c to 70 p.c).Over $25,00042Starting with Tax Yr 1942, beneficial properties on the sale of belongings held for greater than 6 months (long-term capital beneficial properties) might be handled individually from different taxable revenue and taxed at a most price of 25 p.c.1946-1949Taxable revenue $50,000 or much less:These charges are the sum of the “regular tax” charges and the “surtax” charges, which really utilized to barely totally different definitions of taxable revenue.     First $5,00021     Subsequent $15,00023     Subsequent $5,00025     Subsequent $25,00053Starting with Tax Yr 1942, beneficial properties on the sale of belongings held for greater than 6 months (long-term capital beneficial properties) might be handled individually from different taxable revenue and taxed at a most price of 25 p.c.Taxable revenue over $50,000381942-1945Taxable revenue $50,000 or much less:These charges are the sum of the “regular tax” charges and the “surtax” charges, which really utilized to barely totally different definitions of taxable revenue.     First $5,00025     Subsequent $15,00027Starting with Tax Yr 1942, beneficial properties on the sale of belongings held for greater than 6 months (long-term capital beneficial properties) might be handled individually from different taxable revenue and taxed at a most price of 25 p.c.     Subsequent $5,00029     Subsequent $25,00053Taxable revenue over $50,000401941Taxable revenue $38,461.54 or much less:These charges are the sum of the “regular tax” charges and the “surtax” charges, which really utilized to barely totally different definitions of taxable revenue.     First $5,00021     Subsequent $15,00023     Subsequent $5,00025     Subsequent $13,461.5444Taxable revenue over $38,461.54311940Taxable revenue $31,964.30 or much less:From June 1940 to the top of 1945, a tax on earnings in extra of common prewar earnings was additionally imposed.  It was taken under consideration, as both a deduction or a credit score, for the revenue tax and the opposite extra earnings tax.     First $5,00014.85The charges for 1940 embrace further “protection tax” charges which are built-in with the common charges in later years.     Subsequent $15,00016.5     Subsequent $5,00018.7     Subsequent $6,964.3038.3Taxable revenue over $31,964.30, not over $38,565.84:     First $5,00015.4     Subsequent $15,00016.9     Subsequent $5,00018.9     Subsequent $13,565.8436.9Taxable revenue over $38,565.84241938-1939Taxable revenue $25,000 or much less:     First $5,00012.5     Subsequent $15,00014     Subsequent $5,00016Taxable revenue over $25,000191936-1937     First $2,0008An extra surtax starting from 7 p.c to 27 p.c was imposed on undistributed earnings.     Over $2,000, not over  $15,00011     Over $15,000, not over $40,00013     Over $40,000151932-1935     All taxable revenue13.75An extra “declared worth” extra earnings tax, primarily based on earnings in extra of a share of the worth of company inventory, was in impact from 1933 by 1945.  It was a deduction for revenue tax functions.1930-1931     First $3,0000     Over $3,000121929     First $3,0000     Over $3,000111928     First $3,0000     Over $3,000121926-1927     First $2,0000     Over $2,00013.51925     First $2,0000     Over $2,000131922-1924     First $2,0000     Over $2,00012.51919-1921     First $2,0000     Over $2,000101918     First $2,0000     Over $2,000121917     All taxable revenue6An extra tax on “extra earnings” and/or “warfare earnings” was in impact from 1917 to 1922.  It was allowed as a deduction for computing revenue tax.1916     All taxable revenue21913 (March 1)-1915     All taxable revenue11909-1913 (February 28)     First $5,0000     Over  $5,0001



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