The point at which your amount and types of income and deductions cause you to pay the alternative minimum tax by making the AMT rate higher than your regular tax rate. In the context of stock compensation, at this point you will pay the AMT on additional exercises of incentive stock options (ISOs). One strategy for managing the AMT is to know your AMT cushion (as discussed in an FAQ) and then exercise ISOs up to the income point where the AMT rate equals but does not exceed your regular tax rate.