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AMT Calculator 2026

Do you owe alternative minimum tax in 2026? AMTI with SALT and ISO add-backs, the exemption after the 50% phase-out above $500,000 / $1,000,000, the 26%/28% tentative minimum tax versus regular tax, and the ISO spread you can exercise AMT-free.

✅ Figures verified. 2026 AMT exemption ($90,100 single / $140,200 joint / $70,100 separate), the $500,000 / $1,000,000 phase-out thresholds with the 50% phase-out rate, and the $244,500 28% breakpoint confirmed against Rev. Proc. 2025-32 §4.04 on 8 October 2026.
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Alternative minimum taxable income (AMTI)—
AMT exemption after phase-out—
AMT base—
Tentative minimum tax (26% / 28%)—
Regular income tax—
AMT owed (extra)—
ISO spread you could exercise AMT-free—

In short

The alternative minimum tax recomputes tax on income with the state-tax deduction, ISO exercise spread and other preferences added back, less a 2026 exemption of $90,100 single / $140,200 joint (phasing out at 50% above $500,000 / $1,000,000), at 26% up to $244,500 and 28% above. You pay AMT only to the extent it exceeds regular tax; AMT paid on ISOs becomes a credit against future regular tax.

Who this is for: US employees with incentive stock options and high earners in high-tax states.

Not tax or legal advice. Simplified Form 6251 computation; depreciation, NOL, foreign tax credit and other adjustments are not modelled. Confirm with a tax professional before an ISO exercise.
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How the alternative minimum tax works in 2026

  • Step 1 — AMTI: start from regular taxable income and add back preference items: the state and local tax deduction, the spread on incentive stock options exercised and held through year-end, private-activity bond interest and some depreciation differences. The standard deduction is not an add-back (it is already excluded from AMTI).
  • Step 2 — exemption: $90,100 (single, head of household), $140,200 (joint) or $70,100 (separate) in 2026, reduced by 50¢ for every $1 of AMTI above $500,000 ($1,000,000 joint). The 2025 law cut these thresholds from about $639,000 / $1.28 million and doubled the phase-out rate, so the exemption now disappears at $680,200 (single) and $1,280,400 (joint).
  • Step 3 — tentative minimum tax: 26% on the first $244,500 of the AMT base ($122,250 separate) and 28% above it; long-term gains and qualified dividends keep their 0/15/20% rates.
  • Step 4 — compare: you pay the higher of tentative minimum tax and regular tax; the excess is reported on Form 6251.
  • ISO planning: the most common AMT trigger. Exercise in tranches up to your AMT-free room, or exercise early in the year so you can still sell before 31 December if the shares fall.

See also: Itemized vs Standard Deduction Calculator 2026.

Sources: Rev. Proc. 2025-32 §4.04 (exemption amounts and phase-out); IRS Form 6251 instructions. Checked 8 October 2026.

Assumptions

  • AMTI = taxable income + SALT + ISO spread + other adjustments.
  • Exemption reduced by 50% of AMTI above $500,000 ($1,000,000 joint); 26% up to $244,500 ($122,250 separate) and 28% above; capital gains at 0/15/20%.
  • AMT owed = tentative minimum tax − regular tax (2026 brackets); credits and other Form 6251 lines are not modelled.

Worked example

Single, $350,000 taxable income, $40,000 SALT deducted, $150,000 ISO spread, no capital gains

AMTI = $540,000. Exemption = $90,100 − 50% × $40,000 = $70,100, so the AMT base is $469,900. Tentative minimum tax = 26% × $244,500 + 28% × $225,400 = $126,682. Regular tax on $350,000 is $91,269, so the AMT owed is about $35,413, for total federal income tax of $126,682. Without the ISO exercise (AMTI $390,000, full exemption, base $299,900, TMT $79,082) no AMT would be due — the same taxpayer could exercise roughly $43,500 of spread AMT-free.

Frequently asked questions

What is the AMT exemption for 2026?

$90,100 for single and head-of-household filers, $140,200 for joint filers and $70,100 for married filing separately, phasing out at 50% of AMTI above $500,000 ($1,000,000 joint).

Who pays AMT today?

Mostly people exercising incentive stock options and holding the shares, and high earners with large state-tax deductions or private-activity bond income. After the 2017 and 2025 laws, well under 1% of filers owe it.

Is AMT paid on ISOs lost forever?

No. It creates a minimum tax credit (Form 8801) that offsets regular tax in future years when regular tax exceeds tentative minimum tax — though recovery can take years.

Does the AMT apply to capital gains?

Long-term gains and qualified dividends are taxed at the same 0/15/20% rates under the AMT, but a large gain can still push AMTI into the exemption phase-out and cause AMT on other income.

Does the standard deduction trigger AMT?

No — the standard deduction is not an add-back; the biggest triggers are ISO exercises and large state-tax deductions.

How do I avoid AMT on ISOs?

Exercise only up to your AMT-free room each year, exercise early in the year so you can sell before 31 December if needed, or sell in the same year (a disqualifying disposition is taxed as ordinary income but avoids AMT).

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