Tax Facts

777 / How is the alternative minimum tax calculated?

In addition to the tax calculated under the normal rates, it is sometimes necessary for a taxpayer to pay the alternative minimum tax (AMT). The AMT is calculated by first determining the alternative minimum taxable income (AMTI, see Q 779), reducing this amount by the allowable exemption to determine taxable excess, and then applying a two-tier tax rate schedule to the amount of the taxable excess.

In 2025, the 28 percent rate applies to excess taxable income above $119,550 for married taxpayers filing separately and $239,100 for all other noncorporate taxpayers.

In 2024, the 28 percent rate applies to excess taxable income above $116,300 for married taxpayers filing separately and $232,600 for all other noncorporate taxpayers.

In 2023, the 28 percent rate applied to excess taxable income above $110,350 for married taxpayers filing separately and $220,700 for joint returns, individual returns, and estate and trusts.

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