Free AMT Calculator

Understanding the Alternative Minimum Tax (AMT)

The Alternative Minimum Tax (AMT) calculator is a free online tool that helps taxpayers estimate the minimum federal tax they may owe under this parallel tax system. Unlike the regular income tax, the AMT recalculates taxable income by disallowing certain deductions and applying a different rate structure. This AMT tax calculator integrates the official alternative minimum tax formula, filing‑status‑based AMT exemption amounts, and phase‑out rules to give you a realistic approximation of your potential AMT liability.

The AMT was designed to ensure that high‑income individuals cannot reduce their tax burden below a reasonable minimum through deductions and credits. The AMT exemption amount plays a central role: it shields a portion of income from the AMT, but that exemption begins to phase out when income exceeds specified thresholds. The calculator accounts for both the exemption and the phase‑out, then applies the 26% and 28% bracket rates to compute the final AMT.

Step‑by‑Step AMT Calculation

Below is a worked example for a single filer in tax year 2023. The same logic applies to other filing statuses and years.

1. Compute AMT Income

AMT income starts with total income and adds back any non‑deductible deductions.

$$\text{AMT income} = \text{total income} + \text{non‑deductible deductions}$$

Example: A single filer named Mirabelle reports $120,000 in total income and$20,000 in non‑deductible taxes.

$$\text{AMT income} = \$120,000 + \$20,000 = \$140,000$$

2. Determine the Applicable AMT Exemption

The exemption amount depends on filing status and the tax year. If AMT income exceeds the phase‑out threshold, the exemption is reduced by 25 ¢ for every dollar above the threshold.

2022 AMT Exemptions and Phase‑Out Thresholds

Filing Status	Exemption Amount	Phase‑Out Threshold
Single	$75,900	$539,900
Married Filing Jointly	$118,100	$1,079,800
Married Filing Separately	$59,050	$539,900

2023 AMT Exemptions and Phase‑Out Thresholds

Filing Status	Exemption Amount	Phase‑Out Threshold
Single	$81,300	$578,150
Married Filing Jointly	$126,500	$1,156,300
Married Filing Separately	$63,400	$578,150

Mirabelle, filing single in 2023, has an AMT income of $140,000—well below the$578,150 threshold. Therefore she claims the full exemption of $81,300.

$$\text{taxable AMT income} = \$140,000 - \$81,300 = \$58,700$$

3. Account for Tax Credits

Tax credits (e.g., the Child Tax Credit) reduce the AMT directly. Mirabelle is eligible for $1,000 in credits.

4. Apply the AMT Tax Rates

The AMT uses two marginal rates:

• 26% on taxable AMT income up to a specified threshold
• 28% on any income above that threshold

Thresholds for 2022 and 2023 are shown below.

2022 AMT Rate Thresholds

Filing Status	26% Applies Up To	28% Applies Above
Single, Head of Household, Married Filing Jointly	$206,100	$206,100
Married Filing Separately	$103,050	$103,050

2023 AMT Rate Thresholds

Filing Status	26% Applies Up To	28% Applies Above
Single, Head of Household, Married Filing Jointly	$220,700	$220,700
Married Filing Separately	$110,350	$110,350

Mirabelle’s taxable AMT income ($58,700) is below the 2023 single threshold of$220,700, so only the 26% rate applies.

$$\text{gross AMT} = \$58,700 \times 26\% = \$15,262$$

Subtract her tax credits:

$$\text{final AMT} = \$15,262 - \$1,000 = \$14,262$$

How the AMT Interacts with Regular Tax

You must pay the higher of your regular income tax and your AMT. The calculator can perform this comparison automatically. If your regular liability is $12,000, for example, you would owe$14,262 (the AMT). Conversely, if regular tax is higher, no additional AMT is due.

Important Characteristics of the AMT

• Disallowed deductions: Under the AMT, you generally cannot deduct state and local taxes (SALT), certain medical expenses, or miscellaneous itemized deductions. This is a key difference from the regular tax system.
• Phase‑out of exemption: High‑income filers lose part of their exemption, which effectively increases their AMT income.
• No guaranteed avoidance: While you may reduce AMT exposure by limiting certain deductions or deferring income, the rules are complex. Consulting a tax professional is advisable.

Disclaimer: This AMT calculator provides educational estimates based on the data you enter. Actual tax obligations may differ due to individual circumstances, tax‑law changes, and other factors not captured here. Always verify your results with a qualified tax advisor.