2026 Alternative Minimum Tax Exemption and Phaseout
For tax year 2026, the federal AMT exemption is $90,100 for unmarried individuals and $140,200 for married couples filing jointly, with phaseouts beginning at $500,000 and $1 million respectively.
Timeline
- January 1–December 31, 2026: The 2026 AMT exemption and phaseout figures apply to the tax year.
- Filing season 2027: Taxpayers generally calculate any 2026 AMT on Form 6251 when filing their 2026 returns.
The alternative minimum tax is a parallel federal tax calculation designed to limit the benefit of certain exclusions, deductions and other preference items. A taxpayer first calculates regular income tax, then makes the adjustments required for AMT and calculates tentative minimum tax. AMT is generally owed only when the minimum-tax result exceeds the regular-tax amount after the applicable rules are applied. [1][2]
For tax year 2026, the IRS set the AMT exemption at $90,100 for unmarried individuals. For married couples filing jointly and qualifying surviving spouses, the exemption is $140,200. The exemption shields part of alternative minimum taxable income before the AMT rates are applied; it is separate from the ordinary standard deduction. [1][2]
The exemption begins to phase out when alternative minimum taxable income reaches $500,000 for an unmarried taxpayer and $1 million for a married couple filing jointly. In general, the exemption is reduced by 25 cents for each dollar above the relevant threshold. That means the exemption gradually disappears rather than vanishing immediately when income crosses the starting point. [2]
Using that formula, a $90,100 unmarried exemption is fully absorbed after $360,400 of income above the $500,000 phaseout start, or at $860,400. The $140,200 joint exemption is fully absorbed after $560,800 above $1 million, or at $1,560,800. Those figures illustrate only the exemption phaseout; they do not by themselves calculate final AMT. [1][2]
AMT exposure depends on the return’s specific adjustments and preference items, not just gross income. Items involving incentive stock options, certain depreciation, private-activity bond interest, large state and local tax deductions, or other Form 6251 adjustments can change alternative minimum taxable income. A high salary alone does not prove AMT is due, and a phaseout threshold is not an additional tax bracket. [2]
Filing status also matters. The published $140,200 amount applies to joint filers, while married individuals filing separately use different limits and may face special rules. Taxpayers should not divide the joint amount in half and assume that reproduces every separate-return calculation. Estates, trusts and children subject to special tax rules can have different AMT treatment as well. [2]
The practical starting point is the 2026 Form 6251 and its instructions, using figures from the completed regular return. Tax software normally performs the parallel calculation, but taxpayers with major preference items may need projections before year-end. The IRS inflation-adjustment release confirms the headline exemption and phaseout amounts; the detailed form controls how each item enters the computation. [1][2]
Sources
- IRS — Tax year 2026 inflation adjustments
- IRS Internal Revenue Bulletin 2025-45 — 2026 inflation-adjusted tax items