Income tax was instituted on July 01, 1913

Taxes became mandatory in America in 1913 with the federal income tax. The 16th Amendment of the US Constitution enacted the federal income tax.

The 16th amendment was passed in 1913 to establish Congress right to impose a federal income tax.

. It started at 1% for those making over 20,000.

Abraham Lincoln imposed the first federal income tax in 1891, though it was of questionable legality until the 16th Amendment to the Constitution was ratified February 3, 1913.