Alternative Minimum Tax Calculator
Calculate your AMT liability and determine if you owe alternative minimum tax
Calculate Your Alternative Minimum Tax
Your total income after above-the-line deductions
State/local taxes, property taxes not deductible under AMT
Child tax credit, foreign tax credit, etc.
Your regular income tax liability for comparison
Alternative Minimum Tax Results
💡 Alternative Minimum Tax Information
• AMT ensures high-income taxpayers pay a minimum level of tax
• State and local tax deductions are not allowed under AMT
• You pay the higher of regular tax or AMT
• This calculator is for estimation purposes only
Example AMT Calculation
Single Filer - 2024
AGI: $300,000
Non-Deductible Taxes: $50,000
Tax Credits: $2,000
AMT Calculation
AMTI: $350,000
AMT Exemption: $85,800
Taxable Income: $264,200
AMT Tax: $67,692
Final AMT: $65,692
Result
AMT Liability: $65,692
Marginal Rate: 26%
Effective Rate: 18.8%
AMT Exemption Amounts
2024 Tax Year
2023 Tax Year
AMT Tax Rates
Understanding Alternative Minimum Tax (AMT)
What is AMT?
The Alternative Minimum Tax (AMT) is a parallel tax system designed to ensure that high-income taxpayers pay a minimum level of tax. It eliminates many deductions and credits available under the regular tax system.
How AMT Works
- •Calculate both regular tax and AMT
- •Pay the higher of the two amounts
- •AMT disallows many regular tax deductions
- •Uses different exemption amounts and rates
AMT Adjustments
Common AMT Add-Backs
- • State and local income taxes
- • Property taxes
- • Miscellaneous itemized deductions
- • Interest on home equity loans
- • ISO stock option exercises
Important: The AMT calculation is complex and this calculator provides estimates. Consult a tax professional for detailed planning.
AMT Calculation Process
Step-by-Step Calculation
- Start with Adjusted Gross Income (AGI)
- Add back AMT preference items
- Calculate Alternative Minimum Taxable Income (AMTI)
- Subtract AMT exemption amount
- Apply AMT tax rates (26% and 28%)
- Subtract allowable tax credits
- Compare with regular tax liability
Exemption Phase-Out
AMT exemptions are reduced by 25% of the amount AMTI exceeds:
- • Single: $609,350 (2024)
- • MFJ: $1,218,700 (2024)
- • MFS: $609,350 (2024)
Exemption is completely phased out at higher income levels.
Who Pays AMT?
AMT typically affects high-income taxpayers who:
High-Risk Factors
- • High state and local tax deductions
- • Large families with many exemptions
- • Incentive stock option exercises
- • High miscellaneous deductions
Income Ranges
- • Most likely: $200K - $1M income
- • Less likely: Under $75K income
- • Variable: Over $1M income
- • Depends on deductions and credits