<P> Congress enacted an income tax in October 1913 as part of the Revenue Act of 1913 , levying a 1 % tax on net personal incomes above $3,000 , with a 6 % surtax on incomes above $500,000 . By 1918 , the top rate of the income tax was increased to 77 % ( on income over $1,000,000 , equivalent of 15,300,000 in 2012 dollars ) to finance World War I . The average rate for the rich however , was only 15 % . The top marginal tax rate was reduced to 58 % in 1922 , to 25 % in 1925 and finally to 24 % in 1929 . In 1932 the top marginal tax rate was increased to 63 % during the Great Depression and steadily increased , reaching 94 % ( on all income over $200,000 , equivalent of 2,500,000 in 2012 dollars ) in 1945 . During World War II , Congress introduced payroll withholding and quarterly tax payments . </P>
<P> Congress enacted an income tax in October 1913 as part of the Revenue Act of 1913 , levying a 1 % tax on net personal incomes above $3,000 , with a 6 % surtax on incomes above $500,000 . By 1918 , the top rate of the income tax was increased to 77 % ( on income over $1,000,000 , equivalent of 15,300,000 in 2012 dollars ) to finance World War I . The average rate for the rich however , was only 15 % . The top marginal tax rate was reduced to 58 % in 1922 , to 25 % in 1925 and finally to 24 % in 1929 . In 1932 the top marginal tax rate was increased to 63 % during the Great Depression and steadily increased , reaching 94 % ( on all income over $200,000 , equivalent of 2,500,000 in 2012 dollars ) in 1945 . During World War II , Congress introduced payroll withholding and quarterly tax payments . </P>
when did we start paying federal income tax
when did we start paying federal income tax
1913
1913