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August 24, 2021

Historical U.S. Federal Corporate Income Tax Rates & Brackets, 1909-2020

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Historical Corporate Tax Rates and Brackets, 1909 to 2020
Historical Federal Corporate Income Tax Rates and Brackets, 1909 to 2020
Year Taxable Income Brackets Rates (%) Notes:
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  

Source: SOI Tax Stats – Historical Table 24 (1909-2010) https://www.irs.gov/statistics/soi-tax-stats-historical-table-24

2011-2020: Internal Revenue Service, Instructions for Form 1120.

U.S. Corporation Income Collections, 1934 to 2020
Year Collections [nominal] (millions) Collections as a % of GDP (Percentge)
2020 211,845 1.0
2019 230,245 1.1
2018 204,733 1.0
2017 297,048 1.5
2016 299,571 1.6
2015 343,797 1.9
2014 320,731 1.9
2013 273,506 1.6
2012 242,289 1.5
2011 181,085 1.2
2010 191,437 1.3
2009 138,229 1.0
2008 304,346 2.1
2007 370,243 2.6
2006 353,915 2.6
2005 278,282 2.2
2004 189,371 1.6
2003 131,778 1.2
2002 148,044 1.4
2001 151,075 1.4
2000 207,289 2.0
1999 184,680 1.9
1998 188,677 2.1
1997 182,293 2.2
1996 171,824 2.2
1995 157,004 2.1
1994 140,385 2.0
1993 117,520 1.7
1992 100,270 1.6
1991 98,086 1.6
1990 93,507 1.6
1989 103,291 1.9
1988 94,508 1.8
1987 83,926 1.8
1986 63,143 1.4
1985 61,331 1.4
1984 56,893 1.4
1983 37,022 1.0
1982 49,207 1.5
1981 61,137 2.0
1980 64,600 2.3
1979 65,677 2.6
1978 59,952 2.6
1977 54,892 2.7
1976 41,409 2.3
1975 40,621 2.5
1974 38,620 2.6
1973 36,153 2.7
1972 32,166 2.6
1971 26,785 2.4
1970 32,829 3.1
1969 36,678 3.7
1968 28,665 3.2
1967 33,971 4.1
1966 30,073 3.9
1965 25,461 3.6
1964 23,493 3.6
1963 21,579 3.5
1962 20,523 3.5
1961 20,954 3.8
1960 21,494 4.0
1959 17,309 3.4
1958 20,074 4.2
1957 21,167 4.6
1956 20,880 4.8
1955 17,861 4.4
1954 21,101 5.5
1953 21,238 5.6
1952 21,226 5.9
1951 14,101 4.3
1950 10,449 3.7
1949 11,192 4.0
1948 9,678 3.7
1947 8,615 3.6
1946 11,883 5.2
1945 15,988 7.1
1944 14,838 6.9
1943 9,557 5.2
1942 4,719 3.2
1941 2,124 1.8
1940 1,197 1.2
1939 1,127 1.2
1938 1,287 1.4
1937 1038 1.2
1936 719 0.9
1935 529 0.8
1934 364 0.6

Source: White House: Office of Management and Budget: Historical Tables 2.1, 2.3 https://www.whitehouse.gov/omb/historical-tables/

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A corporate income tax (CIT) is levied by federal and state governments on business profits. Many companies are not subject to the CIT because they are taxed as pass-through businesses, with income reportable under the individual income tax.

Taxable income is the amount of income subject to tax, after deductions and exemptions. For both individuals and corporations, taxable income differs from—and is less than—gross income.