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.