Revenue Act of 1861

The Revenue Act of 1861, An Act to Provide full name of Increased Revenues from Imports, to pay Interest on the Public Debt, and for other Purposes, was the first federal law in the United States, which provided for the creation of an income tax. The law took effect on August 5, 1861 with the signature of President Abraham Lincoln in force.

The tax rate provided for a fixed collection of 3% on all annual income above U.S. $ 800. When adjusted for inflation, this would correspond in 2009 a limit of 18,875 U.S. dollars. The tax rate increased to 5% for all the people who had their permanent residence abroad. One year after the entry into force of the Act was introduced in the Revenue Act of 1862, a progressive tax.