AMT Rates:
26%, on Alternative Minimum Taxable Income (AMTI) up to
2025 - $239,100 ($119,550 for married filing separately)
2024 - $232,600 ($116,300 for married filing separately)
2023 - $220,700 ($110,350 for married filing separately)
28% on AMTI over the above amounts.
The AMT Exemption
Because the alternative minimum tax (AMT) was never intended to apply to
lower and middle income taxpayers who have small amounts of AMT adjustment or preference items, an exemption is provided to taxpayers to generally prevent them from being subject to the AMT.
The AMT exemption is an amount that a taxpayer is allowed to deduct from
alternative minimum taxable income AMTI before calculating the taxpayer’s AMT liability. The exemption amount for a particular taxpayer depends on the taxpayer’s filing status. To prevent upper-income taxpayers from benefiting from the AMT exemption, the exemption phases out after a taxpayer’s AMTI reaches a certain level, also based on the taxpayer’s filing status.
AMT Exemption Amounts - 2025
For 2025, the AMT exemption amounts for taxpayers not subject to the
exemption phase-out are:
A child subject to the kiddie tax rules for regular tax purposes determines his or her AMT exemption under special rules in Code Sec. 59(j)(1). The AMT exemption for a child subject to the kiddie tax is the lesser of the AMT
exemption for a single taxpayer or the total of the child's earned income plus $5,000, indexed for inflation. For 2025, the amount indexed for inflation is $9,550.
Exemption Phase-Out and Phase-Out Thresholds - 2025
The AMT exemption amount is reduced one dollar for every four dollars of AMTI above the threshold amount for the taxpayer’s filing status.
Exemption phase-out thresholds: The phase-out thresholds are:
EXAMPLE: Tim and Heather, a couple filing jointly, have AMTI of $1,267,100 in 2025. Their AMT exemption is $133,400, which is the full exemption amount of $137,000 less $3,600 [.25 x ($1,233,100- $1,252,700)].
AMTI level exemption is completely phased out: Because the AMT exemption phase-out is controlled by the amount of the exemption for a filing status and the amount that AMTI exceeds the phase-out threshold for that filing status, there is a common AMTI level where the exemption for each filing status phases out completely for all taxpayers filing under that status. The exemption phases out completely at the following levels of AMTI in 2025:
Exemption & Phaseout Thresholds in 2026
The AMT exemption amounts for 2026 are $90,100 for taxpayers filing single or head of household, $140,200 for taxpayers filing married filing jointly or qualifying widower, and $70,100 for taxpayers filing married filing separately.
The One Big Beautiful Bill Act of 2025 (the OBBBA) set the AMT exemption phase-out thresholds at $500,000 of AMTI for taxpayer’s filing single, head-of-household, and married filing separately and $1,000,000 of AMTI for taxpayers filing married filing jointly or qualifying widower. The threshold amounts will be adjusted for inflation after 2026.
Also, beginning in 2026, the OBBBA increased the exemption phase-out percentage 25% to 50%. Thus, the exemption in 2026 will be reduced by $1 of for every $2 of AMTI exceeds the threshold amounts. The exemption will phase-out completely for taxpayers filing single or head-of-household at AMTI of $680,200, taxpayers filing married filing jointly or qualifying widower at AMTI of $1,280,400, and taxpayers filing married filing single at AMTI of $640,200.
EXAMPLE: Mike, a taxpayer filing single, has AMTI of $590,100 in 2026. His AMT exemption is $45,050, which is the full exemption amount of $90,100 less $45,050 [.50 x ($590,100 - $500,000)]
Need more help with the AMT Exemption rules?
Submit a question to the AMT Advisor.
