Chart Of the Week – Over A Century Of Tax Rates

This chart shows the top marginal federal income tax rate in the United States since 1920.

Today’s top marginal rate of 37.0% is more than 20 percentage points below the long-term average. After peaking above 90% in the 1940s and 1950s, rates have remained lower for decades.

Although taxes may feel high today, the historical data suggests the top marginal rate is well below its long-term average.