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The alternative minimum tax in 2026
A parallel tax with its own exemption and two rates, which for 2026 starts to bite at lower incomes than in 2025.
Alternative minimum tax check
AMT owed on top of regular tax
$0
Regular tax is higher: no AMT
- Exemption after phase-out$140,200
- AMT base$509,800
- Tentative minimum tax (26% / 28%)$137,854
Ordinary-income rates only; long-term gains keep their 0/15/20% rates inside the AMT and are not separated here (Form 6251 does it).
The alternative minimum tax is a second computation of income tax with fewer deductions, a large exemption and two rates, 26% and 28%; you pay whichever of the regular tax and the tentative minimum tax is higher. For 2026 the exemption is $90,100 for single filers and heads of household, $140,200 for married couples filing jointly and $70,100 married filing separately, and the 28% rate starts above $244,500 of AMT base (Rev. Proc. 2025-32 section 4.10). The exemption phases out from $500,000 of alternative minimum taxable income single and $1,000,000 joint, at 50 cents per dollar, and is gone at $680,200 and $1,280,400. Public Law 119-21 made the higher exemption permanent but brought the thresholds back from $626,350 and $1,252,700 in 2025 and doubled the phase-out rate from 25%, so more high earners meet the AMT in 2026. Typical triggers: exercising incentive stock options, large state and local taxes added back, private activity bond interest.
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The 2026 and 2025 figures
| Item | 2026 single | 2026 joint | 2025 single | 2025 joint |
|---|---|---|---|---|
| Exemption | $90,100 | $140,200 | $88,100 | $137,000 |
| Phase-out starts | $500,000 | $1,000,000 | $626,350 | $1,252,700 |
| Exemption gone at | $680,200 | $1,280,400 | $978,750 | $1,800,700 |
| 28% rate above | $244,500 | $244,500 | $239,100 | $239,100 |
How the computation runs
Start from regular taxable income, add back the items the AMT does not allow (state and local taxes, the incentive stock option spread, private activity bond interest, some depreciation differences), and you have alternative minimum taxable income. Subtract the exemption left after the phase-out, then tax the result at 26% up to $244,500 and 28% above, with long-term gains still at their 0%, 15% and 20% rates. If this tentative minimum tax exceeds the regular tax, the difference is the AMT, added on Schedule 2. The calculator handles the ordinary-income part; Form 6251 separates the gains.
The AMT credit
AMT caused by timing items, such as the stock option spread or depreciation differences, generates a minimum tax credit on Form 8801 that can reduce regular tax in later years when the regular tax is higher than the tentative minimum tax. AMT caused by permanent items, such as state and local taxes, creates no credit. Keeping the Form 6251 of each year matters for that reason.
Who should run the check
Households with AMT income in or above the phase-out range, roughly $500,000 single or $1,000,000 joint, especially in high-tax states now that the SALT deduction can reach $40,400 below $505,000 of modified AGI; employees exercising incentive stock options of any size; investors with large private activity bond interest. Most households under the phase-out start never pay it, because the exemption covers the add-backs. Each item of the AMT computation is reported on Form 6251.
Sources: IRS Rev. Proc. 2025-32: 2026 inflation-adjusted items and 2025 items modified by Public Law 119-21 (October 9, 2025); IRS Rev. Proc. 2024-40: 2025 inflation-adjusted items; IRS: Working Families Tax Cuts, provisions for individuals and workers, read on October 11, 2026.