Quick Answer
AMT exemptions for 2026 increased significantly: $85,700 for single filers and $133,300 for married filing jointly, up from the pre-TCJA levels. However, the phase-out thresholds remained lower than the TCJA years, affecting more high earners starting at $609,350 (single) and $1,218,700 (MFJ).
Best Answer
Michelle Woodard, JD
Best for taxpayers with income over $200,000 who may be subject to AMT
How AMT changed for 2026
The alternative minimum tax (AMT) underwent significant modifications in 2026. Instead of reverting to the pre-2018 exemption levels as originally scheduled, Congress established new, higher exemption amounts while maintaining more restrictive phase-out rules that affect high earners.
The new AMT exemption amounts for 2026
These exemptions are substantially higher than the pre-TCJA levels ($54,300 single, $84,500 MFJ in 2017) but lower than the peak TCJA amounts.
Example: High earner AMT calculation
Let's calculate AMT for a single filer with $400,000 in regular taxable income and $350,000 in alternative minimum taxable income (AMTI):
Step 1: Apply the exemption
Step 2: Calculate tentative minimum tax
Step 3: Compare to regular tax
Phase-out thresholds — where AMT really bites
The exemption phases out at much lower income levels than during the TCJA years:
2026 phase-out begins at:
At these income levels, the exemption reduces by 25 cents for every dollar of AMTI above the threshold.
What triggers AMT in 2026
Common AMT triggers that affect high earners:
Strategic planning for AMT
Income timing strategies:
Deduction strategies:
What you should do
AMT planning requires year-round attention, especially with the lower phase-out thresholds. Key actions:
1. Project your AMT liability early — Don't wait until year-end
2. Review investment strategies — AMT affects the tax efficiency of various investments
3. Coordinate with state planning — State AMT rules may differ
4. Consider entity structures — S-corps and partnerships can help manage AMT exposure
Use our return scanner to check if you paid AMT unnecessarily or missed planning opportunities.
Key takeaway: AMT exemptions increased to $85,700 (single) and $133,300 (MFJ) for 2026, but lower phase-out thresholds starting at $609,350 (single) mean more high earners will face AMT than in recent years.
*Sources: [IRS Form 6251 Instructions](https://www.irs.gov/pub/irs-pdf/i6251.pdf), IRC Section 55*
Key Takeaway: AMT exemptions increased to $85,700 (single) and $133,300 (MFJ) for 2026, but lower phase-out thresholds starting at $609,350 (single) mean more high earners will face AMT than in recent years.
AMT exemption amounts by year and filing status
| Filing Status | 2017 (Pre-TCJA) | 2025 (TCJA) | 2026 (New Rules) |
|---|---|---|---|
| Single | $54,300 | $81,300 | $85,700 |
| Married Filing Jointly | $84,500 | $126,500 | $133,300 |
| Married Filing Separately | $42,250 | $63,250 | $66,650 |
| Head of Household | $54,300 | $81,300 | $85,700 |
More Perspectives
Robert Kim, CPA
Best for middle and upper-middle income taxpayers wondering if AMT affects them
Will AMT affect you in 2026?
For most taxpayers, the AMT changes in 2026 are positive news. The higher exemption amounts ($85,700 single, $133,300 married filing jointly) mean fewer people will be subject to AMT compared to pre-2018 levels.
Income levels where AMT typically kicks in
AMT generally doesn't affect you unless:
Example: Family with high state taxes
The Martinez family (married filing jointly) has:
Regular tax calculation:
AMT calculation:
If their regular tax is less than $36,842, they owe AMT on the difference.
Simple ways to avoid AMT
Key takeaway: Most middle-income taxpayers won't face AMT in 2026 due to higher exemptions, but families with high state taxes or significant investment income should monitor their exposure.
Key Takeaway: Most middle-income taxpayers won't face AMT in 2026 due to higher exemptions, but families with high state taxes or significant investment income should monitor their exposure.
Michelle Woodard, JD
Best for families where parents receive stock options or other equity compensation
How stock compensation affects family AMT planning
Families with stock compensation face unique AMT challenges in 2026. While the higher exemptions provide some relief, incentive stock options (ISOs) remain a significant AMT trigger that requires careful planning.
Example: Tech worker family with ISOs
David and Lisa have two children and combined W-2 income of $220,000. David exercises ISOs with a bargain element of $150,000 in 2026.
AMT impact:
Timing strategies for families
Exercise timing: Consider spreading ISO exercises over multiple years to stay below AMT thresholds or maximize exemption benefits.
Disqualifying dispositions: Selling ISO stock in the same year as exercise eliminates the AMT preference but may increase regular tax.
Education planning: AMT affects the value of education credits and deductions, so coordinate 529 distributions and tuition payments.
AMT credit planning
ISO-related AMT often generates AMT credits that can be used in future years. With changing AMT rules, these credits become more valuable:
Child-related considerations
The child tax credit and other family credits are allowed against both regular tax and AMT, providing some relief. However, education credits may be limited if you're in AMT.
Key takeaway: Families with stock compensation should spread ISO exercises over multiple years and track AMT credits carefully, as the 2026 AMT changes make strategic planning even more important.
Key Takeaway: Families with stock compensation should spread ISO exercises over multiple years and track AMT credits carefully, as the 2026 AMT changes make strategic planning even more important.
Sources
- IRS Form 6251 Instructions — Alternative Minimum Tax for Individuals
Reviewed by Michelle Woodard, JD on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.