War Revenue Act of 1917

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The United States War Revenue Act of 1917 greatly increased federal income tax rates while simultaneously lowering exemptions.

The 2% bracket had previously applied to income below $20,000. That amount was lowered to $2,000. The top bracket (on income above $2 million) was raised from 15% to 67%.

The act was applicable to incomes for 1917.

War Income Tax for Individuals[edit]

In addition to the Normal Tax and an Additional Tax levied against the net income of individuals in the Revenue Act of 1916 a "like normal" tax and a "like additional" tax were levied against the net income of individuals as shown in the following table.

Revenue Act of 1917
War Income Tax on Individuals

40 Stat. 300 [1]

Tax Rates from 1916 Act Tax Rates from 1917 Act
Net Income
(dollars)
Normal Rate
(percent)
Additional Rate
(percent)
Like Normal Rate
(percent)
Like Additional Rate
(percent)
Combined Rate
(percent)
0 2 0 2 0 4
5,000 2 0 2 1 5
7,500 2 0 2 2 6
10,000 2 0 2 3 7
12,500 2 0 2 4 8
15,000 2 0 2 5 9
20,000 2 1 2 7 12
40,000 2 2 2 10 16
60,000 2 3 2 14 21
80,000 2 4 2 18 26
100,000 2 5 2 22 31
150,000 2 6 2 25 35
200,000 2 7 2 30 41
250,000 2 8 2 34 46
300,000 2 9 2 37 50
500,000 2 10 2 40 54
750,000 2 10 2 45 59
1,000,000 2 11 2 50 65
1,500,000 2 12 2 50 66
2,000,000 2 13 2 50 67
  • Exemption of $3,000 for single filers and $4,000 for married couples or heads of household.

Inflation-adjusted numbers[edit]

Corrected for inflation by CPI:

1917 dollars 2005 dollars
$2,000 $30,516
$20,000 $305,156
$2,000,000 $30,515,625

Notes[edit]