Common triggers: large SALT deductions, incentive stock option exercises, tax-exempt interest from private activity bonds, and large itemized deductions.

The 2017 tax reform significantly reduced AMT exposure by increasing exemptions and capping SALT at $10,000. Far fewer taxpayers owe AMT now.

Can I get AMT credit in future years?

Yes. If you pay AMT due to timing differences (like ISO exercises), you may claim an AMT credit in future years when those items reverse.

Free AMT Estimator

Estimate whether you may owe Alternative Minimum Tax by comparing your regular tax to tentative AMT.

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Taxable Income

USD

SALT Deduction Claimed

USD

Other AMT Preference Items

USD

AMT (if any)

Alternative Minimum Taxable Income$210,000

Regular Tax$41,043

AMT (if any) vs Taxable Income

View formula & how it works →

Alternative Minimum Tax

The AMT is a parallel tax system that limits certain deductions and tax breaks.

AMT = max(Tentative AMT - Regular Tax, 0)

2024 AMT Exemptions

Filing StatusExemption Single$85,700 Married Filing Jointly$133,300

AMT rates: 26% on first $232,600, 28% above that.

Example Calculation

$200,000 income, $10,000 SALT deduction.

01AMTI = $200,000 + $10,000 = $210,000
02AMT base = $210,000 - $85,700 = $124,300
03Tentative AMT = $124,300 x 26% = $32,318
04Regular tax on $200k = ~$36,428
05AMT = max($32,318 - $36,428, 0) = $0

Frequently Asked Questions

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Free AMT Estimator

Alternative Minimum Tax

2024 AMT Exemptions

Example Calculation

Frequently Asked Questions

How to Calculate Mortgage Payments

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