Alternative Minimum Tax (AMT) Calculator

2026

Calculate whether you owe AMT from ISO stock options, SALT deductions, or high income.

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Filing Status
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Regular Tax

$41,063.00

Additional AMT

$14,811.00

Total Tax

$55,874.00

AMT Calculation

Regular Taxable Income$200,000.00
+ ISO Exercise Spread$100,000.00
+ SALT Addback (above $10K)$5,000.00
Alternative Minimum Taxable Income (AMTI)$305,000.00
AMT Exemption (Single)$90,100.00
AMT Taxable Income$214,900.00
Tentative Minimum Tax$55,874.00

Tax Comparison

Regular Federal Tax$41,063.00
Tentative Minimum Tax (AMT)$55,874.00
Additional AMT Owed$14,811.00
Total Federal Tax$55,874.00
AMT Triggered?Yes

Strategies to Minimize AMT

Spread ISO exercisesExercise over multiple tax years
Time exercises strategicallyExercise when stock price is near strike
AMT credit carryforwardAMT paid on ISOs generates a credit for future years
Consider disqualifying dispositionSelling ISO shares early avoids AMT (but loses LTCG)
Minimize SALT in AMT yearsDefer property tax payments if possible

Use the Alternative Minimum Tax (AMT) Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

The Alternative Minimum Tax (AMT) Calculator determines if you owe additional tax under the parallel AMT system, which ensures high earners pay a minimum amount regardless of deductions. For 2026, the AMT exemption amounts are $85,700 for single filers and $133,300 for married filing jointly, with phase-out beginning at $609,350 and $1,218,700 respectively.

The calculator computes your Alternative Minimum Taxable Income (AMTI) by adding back certain deductions and preferences to your regular taxable income, then applies AMT rates of 26% and 28%. You owe AMT only if this calculated amount exceeds your regular income tax liability, paying the difference as additional tax.

Common AMT triggers include large state and local tax deductions, significant miscellaneous itemized deductions, and incentive stock option exercises. Many taxpayers are surprised by AMT when they have high income but substantial deductions that are disallowed under AMT rules, particularly in high-tax states.

Single Filer with $200,000 Income and $25,000 State Tax Deduction

  1. 1 Calculate AMTI: Start with $200,000 taxable income and add back the $25,000 state and local tax deduction (disallowed for AMT), resulting in $225,000 AMTI.
  2. 2 Apply AMT exemption: Subtract the $85,700 single filer exemption from $225,000 AMTI to get $139,300 in taxable AMT income.
  3. 3 Calculate AMT liability: Apply 26% rate to the first $220,700 of AMT income, resulting in $36,218 in tentative minimum tax ($139,300 × 26%).
  4. 4 Compare to regular tax: If regular income tax is $32,000, the AMT liability is $4,218 ($36,218 - $32,000), which must be paid in addition to regular tax for a total of $36,218.

Source: IRS — Forms, Instructions & Publications · Last updated: April 2026

Frequently Asked Questions

Who has to pay AMT in 2026?
AMT primarily affects high-income earners who exercise large ISO stock options, have significant state and local tax deductions, or claim many preference items. The 2026 AMT exemption is $88,100 (single) and $137,000 (married filing jointly).
How is AMT calculated?
Start with taxable income, add back AMT preference items (like SALT deductions and ISO spreads), subtract the AMT exemption, and apply AMT rates (26% up to $248,300, 28% above). If AMT exceeds your regular tax, you pay the difference.
Do ISO stock options trigger AMT?
Yes, the spread between the exercise price and fair market value of ISOs at exercise is an AMT preference item. A large ISO exercise can trigger tens of thousands in AMT. Consider exercising ISOs gradually across multiple tax years to minimize impact.