The Tax Cuts & Jobs Act (i.e. tax reform), which took effect in 2018, made significant changes to factors in the calculation of the alternative minimum tax (AMT) that generally reduced the likelihood of having to pay the AMT. These changes include higher AMT income exemption amounts and an increase in the income point where the AMT phaseout begins.
For details about the AMT calculation, see the related FAQ. See also the FAQs about how to minimize AMT liability, or how to manage the AMT if you know you must pay it.
2023 AMT income exemption amounts, phaseouts, and rate thresholds
| Filer status in 2023 | AMT income exemption amount | Exemption amount phaseout starts | Exemption amount phaseout ends | Point where rate rises from 26% to 28% |
| Single | $81,300 | $578,150 | $903,350 | $220,700 (married filing separately: $110,350) |
| Joint | $126,500 | $1,156,300 | $1,662,300 | $220,700 |
2022 AMT income exemption amounts, phaseouts, and rate thresholds
| Filer status in 2022 | AMT income exemption amount | Exemption amount phaseout starts | Exemption amount phaseout ends | Point where rate rises from 26% to 28% |
| Single | $75,900 | $539,900 | $843,500 | $206,100 (married filing separately: $103,050) |
| Joint | $118,100 | $1,079,800 | $1,552,200 | $206,100 |
For comparison, in 2017 (before the TCJA) the AMT figures were much lower:
- The AMT income exemption amount was $54,300 for single filers and $84,500 for married joint filers
- The AMT income exemption started to phase out at $120,700 for individuals and $160,900 for married couples
