AMT Calculator
With this AMT calculator, we aim to help you calculate the minimum tax you owe to the government. To understand more on this topic, check out our salary calculator.
We have written this article to help you understand what alternative minimum tax is and how AMT is calculated. We will also demonstrate an alternative minimum tax calculation example to help you understand the process.
What is alternative minimum tax?
The alternative minimum tax is the minimum amount of tax a person owes to the government. It takes into account the exemption amount, which is the part of your salary that is not subjected to taxation, and tax credits, which is the money returned by the government to the taxpayers.
Now, let's look at how we can calculate the AMT tax.
How to calculate alternative minimum tax? How is AMT calculated?
To understand the concept of alternative minimum tax, let's take Mirabelle as an alternative minimum tax calculation example:
 Year of income:
2023
 Total income:
$120,000
 Nondeductible taxes:
$20,000
 Filing status:
Single
 Tax credits:
$1,000

Calculate the AMT income.
The first step is to calculate your
AMT income
. TheAMT income
uses this formula:AMT income = total income + tax nondeductible part of your deductions
.Hence, Mirabelle's
AMT income
is$120,000 + $20,000 = $140,000
.You can also check out our annual income calculator to understand more about this topic.

Calculate the taxable income.
To calculate the
taxable income
, you must first consider your filing status. The filing status determines your AMT exemption amount as follows:
Filing Status  2022  2023 

Single  75,900  81,300 
Married Filing Jointly  118,100  126,500 
Married Filing Separately  59,050  63,400 
In addition, you should take into consideration the below phaseout thresholds. If your income exceeds this limit, your AMT exemption begins to phase out at 25 cents for every dollar over the threshold.
Filing Status  2022  2023 

Single  539,900  578,150 
Married Filing Jointly  1,079,800  1,156,300 
Married Filing Separately  539,900  578,150 
Now, you can calculate the taxable income
using this formula:
taxable income = AMT income  AMT exemption amount
Hence, Mirabelle's taxable income
is $140,000  $81,300 = $58,700
.

Determine the tax credits.
Then, we need to determine the
tax credits
you are entitled to receive. Thetax credits
are the amount of money that the government returns to the taxpayers under some special circumstances. For example, to help families with children, the U.S. government impose the Child Tax Credits to relieve the burden of families with kids.In the example, Mirabelle is entitled to
tax credits
of$1,000
. 
Calculate the alternative minimum tax.
The last step is to calculate the
alternative minimum tax
considering the applicable AMT tax rates summarized in the below table.
Applicable tax rates for 2022:
Filing status  Tax rate 26% below threshold  Tax Rate of 28% above threshold  

Other than married filing separately  Up to $206,100  Any excess above 206,100  
Married Filing Separately  Up to $103,050  Any excess above $103,050 
Applicable tax rates for 2023:
Filing status  Tax rate 26% below threshold  Tax Rate of 28% above threshold 

Other than married filing separately  Up to $220,700  Any excess above 220,700 
Married Filing Separately  Up to $110,350  Any excess above $110,350 
You can achieve this by applying the alternative minimum tax equation:
alternative minimum tax = (AMTI below threshold × 26% + any excess above threshold × 28%)  tax credits
Thus, in this example, Mirabelle's alternative minimum tax is $58,700 × 26%  $1,000 = $14,262
.
 Compare the alternative minimum tax with your regular income tax, which you may estimate by our tax bracket calculator: you must pay the higher tax amount.
What are the applications of AMT?
Now, let's talk about some of AMT's applications.
If the taxpayer's AMT liability exceeds their regular tax liability, they must pay the higher amount. However, if their regular tax liability is greater than their AMT liability, they will not owe any additional tax under the AMT system.
It's worth noting that deductions for state and local taxes are generally not allowed under the AMT. This is a significant change from the regular tax rules, where taxpayers are typically allowed to deduct these taxes from their taxable income. Additionally, certain deductions for medical expenses and miscellaneous itemized deductions are also limited under the AMT system.
While there is no guaranteed way to avoid paying the AMT, there are some steps that may reduce your likelihood of being subject to the tax. For example, reducing certain deductions or deferring certain types of income may help to lower your AMT liability. Additionally, consulting with a tax professional can help you navigate the complex rules surrounding the AMT and develop a strategy for minimizing your tax liability.
FAQ
What is the alternative minimum tax if my taxable income is $100,000?
The alternative minimum tax will be $15,000. This is based on the assumption of a tax rate of 15% and no tax credits.
How do I calculate my alternative minimum tax?
You can calculate the AMT tax in four steps:

Calculate the AMT income.

Determine the taxable income based on your filing status.

Determine the appropriate tax rate.

Apply the alternative minimum tax formula:
taxable income × tax rate  tax credits
What is taxable income?
Taxable income is the amount of your income that is subjected to the tax imposed by the government. The part of your salary that is not subjected to tax is called the exemption amount.
How does the AMT affect my tax liability?
If your AMT liability exceeds your regular tax liability, you will owe the higher amount. However, if your regular tax liability is greater than your AMT liability, you will not owe any additional tax under the AMT system.
Disclaimer
You should consider the AMT Calculator as a model for approximation. All payment figures are estimates based on the data you provided in the specifications that are, despite our best effort, not exhaustive.
For this reason, we created the calculator for instructional purposes only. Still, if you experience a relevant drawback or encounter an inaccuracy, we are always pleased to receive useful feedback and advice.