The U.S. top marginal income tax rate has averaged 56% since 1913. The peak in income tax was at the end of World War II in 1944-1945 with a top marginal tax rate of 94%. Taxes were low during the roaring 20s. From 1932 until 1981, the top marginal tax rate was above 50%. The current tax rate is 37%. This graph highlights how quickly tax policy can shift over time and how low current taxes are by historical standards.
 

Source: U.S. Department of the Treasury, The Business Week Graphic

This graph was produced by Lucas Juery, CFA, CFP^Ⓡ and is not intended to provide financial or tax advice.

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