On July 1, 1862, the Tax Act of 1862 was passed and signed by President Lincoln, establishing a 3% federal tax on income above $600 and a 5% tax on income above $10,000.



Compliance with the act was poor, even though there were needs for the Civil War. After the war the act was declared unconstitutional by the Supreme Court. Review a brief history of the US income tax from the Library of Congress.