Equity Compensation Calculators

AMT (Alternative Minimum Tax) Calculator

Estimate your 2026 Alternative Minimum Tax (AMT) using the current federal exemption, phase-out thresholds, and 26%/28% rate brackets — including ISO exercise and capital gains.

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$0$20,000,000
$0$20,000,000
$0$10,000,000

Total Federal Tax Owed (Regular + AMT)

$73,769.00

Estimated • Based on your inputs

Additional AMT Owed

$0.00

Detailed Breakdown

Regular Tax (Form 1040)$73,769.00
14%
Tentative Minimum Tax$54,574.00
11%
AMT Taxable Income (AMTI)$300,000.00
58%
AMT Exemption (After Phase-Out)$90,100.00
17%
Effective Total Tax Rate24.59%

Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.

How This Calculator Works

Calculation methodology and assumptions

The Alternative Minimum Tax is a parallel tax system: you calculate your tax twice — once under regular rules, once under AMT rules that disallow certain deductions and add back specific "preference items" — and pay whichever is higher. This calculator starts from your regular taxable income, adds any AMT adjustments/preference items you enter (common ones: an Incentive Stock Option exercise bargain element, a disallowed state and local tax deduction, or standard deduction add-back) to get AMT Taxable Income (AMTI). It then applies the 2026 exemption for your filing status, phased out at 50 cents per dollar of AMTI above the 2026 threshold (a steeper phase-out than pre-2026 years, under the One Big Beautiful Bill Act). The remaining AMT base is taxed at 26% up to the 2026 threshold and 28% above it — except long-term capital gains and qualified dividends, which keep their regular preferential rate even under AMT. If this Tentative Minimum Tax exceeds your regular tax, the difference is AMT you owe on top of your regular tax bill.

Key State Information

This is a federal-only calculator. The federal AMT applies nationwide regardless of state; a small number of states have historically layered their own state-level AMT-style add-back rules on top (most notably California's alternative minimum tax for individuals), which are not modeled here.

Standard financial formulas Pre-filled with documented data Estimates only — not financial advice
Data Source
IRS Rev. Proc. 2025-32 (2026 AMT exemption, phase-out thresholds, and rate brackets, incorporating the One Big Beautiful Bill Act)
View Original Source | Source record reviewed | Review target: annually

How to Use This Equity Compensation Calculator

  1. 1

    Enter your information

    Input the required values. The calculator is pre-filled with your state's data where applicable — adjust to match your specific situation for accurate results.

  2. 2

    Review default values

    Check that the pre-filled state-specific data (tax rates, median values, etc.) matches your local situation. You can override any value to customize the calculation.

  3. 3

    Analyze your results

    Review the calculated outputs. Use the breakdown table to understand exactly how each factor contributes to the final result.

  4. 4

    Compare across states

    Use the related state calculators linked below to compare results across different states — useful for relocation planning and financial comparison.

Example Calculation

Here's a practical example using this state's data.

The calculator uses state-specific public data and documented estimates where available — including tax rates, median values, and cost benchmarks — to produce a personalized estimate for the inputs you provide.

Result: Results will vary based on your individual inputs. Use this calculator as a starting point, then adjust the values to test different scenarios. The methodology section below explains exactly how each result is calculated.

What Affects Your Results

State-Specific Inputs

Each state has unique rates, fee schedules, and regulatory requirements that can affect results. This page's methodology and source card identify which inputs are sourced, modeled, or user-adjustable.

Income Level

Many calculations are income-dependent due to progressive tax brackets, phase-outs, or income-based eligibility thresholds. Higher income doesn't always mean proportionally higher costs.

Local Variations

State averages may not reflect your specific city or county. Local taxes, fees, and market conditions can vary ±20% from state averages.

Annual Changes

Tax rates, fee schedules, and regulations change. Check the recorded source-review date and verify critical numbers with the relevant agency.

Tips & Best Practices

  • Always verify pre-filled values against your actual data. State averages are a good starting point but your situation may differ significantly.
  • Run multiple scenarios by adjusting key inputs to see how changes affect your results. This helps with planning and decision-making.
  • Compare your results across states using the related calculators linked below — especially valuable if you're considering relocating or doing business in another state.
  • Bookmark this page to recalculate periodically as rates change. Check the page source card and review date before relying on a pre-filled value.
  • Consult a qualified professional for major financial decisions. These calculators provide estimates based on standard formulas — a CPA or financial advisor can factor in your complete financial picture.
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StateCalc Team

Editorial Team

The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.

Our editorial standards

Frequently Asked Questions

What triggers the Alternative Minimum Tax?

The most common triggers are exercising Incentive Stock Options (a large bargain element added as a preference item), a large state and local tax deduction (disallowed for AMT purposes), high household income combined with a large family (personal exemptions are disallowed for AMT, though this matters less post-TCJA), and certain private activity municipal bond interest that is normally tax-exempt.

How much did the AMT exemption change for 2026?

For 2026, the AMT exemption is $90,100 for single filers and $140,200 for married filing jointly. The bigger change is the phase-out: under the One Big Beautiful Bill Act, the income level where the exemption starts disappearing dropped to $500,000 (single) and $1,000,000 (joint) — down from roughly $626,350/$1,252,700 in 2025 — and the phase-out rate doubled from 25 to 50 cents per dollar over the threshold. That means many taxpayers in the $500K-$1.3M range who haven't owed AMT in years may owe it again in 2026.

What tax rate does AMT use?

AMT uses just two rates: 26% on Alternative Minimum Taxable Income up to $244,500 (2026, most filing statuses; $122,250 for married filing separately) after the exemption, and 28% above that. This is often lower than the top 37% regular marginal rate, but because AMT disallows many deductions and adds back preference items, your AMT base can be much larger than your regular taxable income, so you can still owe AMT even though the rates look lower.

Do long-term capital gains get taxed at 26%/28% under AMT?

No. Long-term capital gains and qualified dividends keep their regular preferential tax rate (0%/15%/20%) even when computing AMT — the 26%/28% rates only apply to the ordinary-income portion of your AMT base. This is a common point of confusion, since it means having capital gains alone rarely triggers AMT by itself.

If I pay AMT, do I get that money back eventually?

Often, partially. AMT caused by "timing" preference items (like an ISO exercise, where the income eventually shows up under the regular system too when you sell) typically generates a Minimum Tax Credit (Form 8801) that can offset your regular tax in future years, once your regular tax exceeds your AMT again. AMT caused by "permanent" preference items (like disallowed SALT) generally does not generate a credit.

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