2027 AMT Alternative Minimum Tax Calculator
Estimate your 2027 Alternative Minimum Tax using the latest IRS exemption amounts and phase-out thresholds (Form 6251 logic).
What Is the 2027 AMT?
The Alternative Minimum Tax (AMT) is a parallel federal tax system that ensures high-income taxpayers pay a minimum amount of tax. You compute your tax both ways and pay the higher. For 2027, the AMT exemption is approximately $88,100 for single filers and $137,000 for married filing jointly (IRS Rev. Proc. 2024-40 inflation adjustments). The 26% rate applies up to about $239,100 of AMTI, with 28% above that threshold. Last updated: May 2026.
2027 AMT Exemption Phase-Out
The exemption phases out at 25 cents per dollar of AMTI above $626,350 single / $1,252,700 MFJ for 2027. High earners with large ISO exercises, big state-tax deductions, or many dependents are most affected. The exemption is fully eliminated around $978,750 single / $1,800,700 MFJ.
What Triggers AMT in 2027
Common AMT triggers: exercising Incentive Stock Options (ISOs) without same-year sale (bargain element is an AMT preference), large state and local tax deductions (added back under OBBB SALT $40,000 cap), private activity bond interest, accelerated depreciation, and certain net operating loss adjustments. The TCJA-era exemption increases were made permanent under OBBB.
AMT Planning Strategies
Track AMT credit carryforward for years you trigger AMT — it offsets regular tax in future years (Form 8801). For ISOs, consider exercising and selling in same year (disqualifying disposition avoids AMT). Bunch deductions in non-AMT years. Long-term capital gains keep their preferential 0/15/20% rates even within AMT calculation.
Frequently Asked Questions
What is the 2027 AMT exemption amount?
For 2027, the AMT exemption is approximately $88,100 for single/HoH filers, $137,000 for married filing jointly, and $68,500 for married filing separately (based on IRS Rev. Proc. 2024-40 inflation projections). These elevated amounts were made permanent under the OBBB tax law.
When does the 2027 AMT exemption phase out?
The exemption phases out at 25% of AMTI exceeding $626,350 for single filers and $1,252,700 for MFJ in 2027. The exemption is fully eliminated around $978,750 single / $1,800,700 MFJ. Below the threshold, you keep the full exemption.
What is the 2027 AMT tax rate?
26% on the first $239,100 of taxable AMTI (after exemption), then 28% above that threshold. For MFS, the 28% rate kicks in at $119,550. Long-term capital gains and qualified dividends keep their preferential 0/15/20% rates even within AMT.
Do ISO exercises trigger AMT in 2027?
Yes. The bargain element (FMV minus exercise price) is an AMT preference item in the year of exercise unless you sell in the same calendar year (a disqualifying disposition). Many tech employees hit AMT for the first time after exercising ISOs without selling.
Can I recover AMT I paid in prior years?
Yes. AMT generated from timing items (like ISO exercise) creates a minimum tax credit carryforward, claimed on Form 8801. It offsets your regular tax in future years when regular tax exceeds tentative AMT. Track this every year.
Does the OBBB SALT cap of $40,000 affect AMT?
Yes. State and local taxes are added back in computing AMTI, so the larger your SALT deduction (up to the $40,000 OBBB cap for 2026-2029), the higher your AMTI. High-tax-state residents with large mortgage interest are most exposed to AMT.