Revenue Act of 1940

The Revenue Act of 1940 permanently increased individual income tax rates in the United States, permanently increased corporate tax rates from 19% to 33% and temporarily increased most excise tax rates to 30-50%. The personal exemption fell from $2,500 to $2,000 (married couples).

Tax on corporations

Normal tax

A Normal Tax was levied on the net income of corporations as shown in the following table.

Revenue Act of 1940
Tax on Corporations

53 Stat. 863 [1]

Net Income
(dollars)
Rate
(percent)
019
25,00033

Tax on individuals

A normal tax and a surtax were levied against the net income of individuals as shown in the following table.

Revenue Act of 1940
Normal Tax and Surtax on Individuals

53 Stat. 5 [2]

Net Income
(dollars)
Normal Rate
(percent)
Surtax Rate
(percent)
Combined Rate
(percent)
0404
4,000448
6,0004610
8,0004812
10,00041014
12,00041216
14,00041519
16,00041822
18,00042125
20,00042428
22,00042731
26,00043034
32,00043337
38,00043640
44,00044044
50,00044448
60,00044751
70,00045054
80,00045357
90,00045660
100,00045862
150,00046064
200,00046266
250,00046468
300,00046670
400,00046872
500,00047074
750,00047276
1,000,00047377
2,000,00047478
5,000,00047579

References

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