Capital Gains Taxes
Tax & AccountingMarch 09, 2021

Historical Capital Gains Rates

A Historical Look at Capital Gains Rates

YEAR INDIVIDUALS CORPORATIONS

 

Maximum capital gains rates

Maximum capital gains rates

1913–1921

same as regular rate

same as regular rate

1922–1933

12.5%

12.5%

1934–1935

17.7%*

13.75%

1936–1937

22.5%*

15.0%

1938–1941

15.0%

same as regular rate

1942–1951

25.0%

25.0%

1952–1953

26.0%

26.0%

1954

25.0%

26.0%

1955–1967

25.0%

25.0%

1968

26.9%

25.0%

1969

27.5%

25.0%

1970

30.2%

25.0%

1971

32.5%

25.0%

1972–1974

35.0%

25.0%

1975–1977

35.0%

30.0%

1978

33.8%

30.0%

1979

35.0%

30.0%

1980–1981 (June 9)

28.0%

28.0%

1981 (after June 9 )–1986

20.0%

28.0%

1987–1992

28.0%

34.0%

1993–1997 (May 6)

28.0%

35.0%

1997 (after May 6)–2003
(
May 5)

20.0%

35.0%

2003 (after May 5)–2012

15.0%

35.0%

2013–2017

20.0%

35.0%

2018-2021

20.0%

21.0%

 

*Assumes 10-year holding period, 30% of gain recognized (sliding scale for exclusion based on holding period).

Please note: Tax law is complex. While an accurate representation of capital gains rate history, this chart may not reflect various factors (such as excess profit taxes, phase-ins, rates on special categories of gain and AMT) that could have affected capital gains taxes throughout the years.

Source: Wolters Kluwer CCH® AnswerConnect, 2021
Permission for use granted.

Mark Luscombe
Principal Federal Tax Analyst
Mark Luscombe, a CPA and attorney, is the principal federal tax analyst for Wolters Kluwer Tax & Accounting. He is the current chair of the Important Developments Subcommittee of the Partnership Committee of the American Bar Association Tax Section and speaks on a wide range of tax topics. He authors monthly columns in Accounting Today and TAXES magazine. Prior to joining Wolters Kluwer, he was in private practice with several Chicago-area law firms where he specialized in taxation.