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).
A Normal Tax was levied on the net income of corporations as shown in the following table.
| Revenue Act of 1940 Tax on Corporations [1] | |||
| Net Income (dollars) | Rate (percent) | ||
| 0 | 19 | ||
| 25,000 | 33 | ||
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 [2] | ||||
| Net Income (dollars) | Normal Rate (percent) | Surtax Rate (percent) | Combined Rate (percent) | |
| 0 | 4 | 0 | 4 | |
| 4,000 | 4 | 4 | 8 | |
| 6,000 | 4 | 6 | 10 | |
| 8,000 | 4 | 8 | 12 | |
| 10,000 | 4 | 10 | 14 | |
| 12,000 | 4 | 12 | 16 | |
| 14,000 | 4 | 15 | 19 | |
| 16,000 | 4 | 18 | 22 | |
| 18,000 | 4 | 21 | 25 | |
| 20,000 | 4 | 24 | 28 | |
| 22,000 | 4 | 27 | 31 | |
| 26,000 | 4 | 30 | 34 | |
| 32,000 | 4 | 33 | 37 | |
| 38,000 | 4 | 36 | 40 | |
| 44,000 | 4 | 40 | 44 | |
| 50,000 | 4 | 44 | 48 | |
| 60,000 | 4 | 47 | 51 | |
| 70,000 | 4 | 50 | 54 | |
| 80,000 | 4 | 53 | 57 | |
| 90,000 | 4 | 56 | 60 | |
| 100,000 | 4 | 58 | 62 | |
| 150,000 | 4 | 60 | 64 | |
| 200,000 | 4 | 62 | 66 | |
| 250,000 | 4 | 64 | 68 | |
| 300,000 | 4 | 66 | 70 | |
| 400,000 | 4 | 68 | 72 | |
| 500,000 | 4 | 70 | 74 | |
| 750,000 | 4 | 72 | 76 | |
| 1,000,000 | 4 | 73 | 77 | |
| 2,000,000 | 4 | 74 | 78 | |
| 5,000,000 | 4 | 75 | 79 | |