2018 AMT Exemption
For 2018, the AMT Exemption is $109,400 (Exemption, joint returns or surviving spouses), $70,300 (Exemption, unmarried individuals), $54,700 (Exemption, married individuals filing separate returns) and 2 more figures below.
| Item | Joint returns or surviving spouses | Unmarried individuals | Married individuals filing separate returns | Estates and trusts |
|---|---|---|---|---|
| Exemption | $109,400 | $70,300 | $54,700 | $24,600 |
| Exemption phaseout threshold | $1,000,000 | - | - | - |
A dash is a figure this site has not published for that row, not an amount of zero.
Effective 2018-01-01Source: Internal Revenue Bulletin 2018-10 (Rev. Proc. 2018-18) (IRS)Verified 2026-08-29
Compared with 2017
| Item | 2017 | 2018 | Change |
|---|---|---|---|
| Exemption, joint returns or surviving spouses | $84,500 | $109,400 | +$24,900 (+29.5%) |
| Exemption, unmarried individuals | $54,300 | $70,300 | +$16,000 (+29.5%) |
| Exemption, married individuals filing separate returns | $42,250 | $54,700 | +$12,450 (+29.5%) |
| Exemption, estates and trusts | $24,100 | $24,600 | +$500 (+2.1%) |
| Exemption phaseout threshold, joint returns or surviving spouses | $160,900 | $1,000,000 | +$839,100 (+521.5%) |
Who it applies to
Taxpayers subject to the individual alternative minimum tax (AMT) under IRC § 55, including joint filers, surviving spouses, unmarried individuals, married individuals filing separate returns, estates, and trusts.
What changed this year, and why
The Tax Cuts and Jobs Act temporarily increased the AMT exemption amounts and phaseout thresholds for taxable years beginning after December 31, 2017. For 2018, the exemption rose to $109,400 for joint filers or surviving spouses (from $84,500 in 2017), $70,300 for unmarried individuals (from $54,300), $54,700 for married individuals filing separate returns (from $42,250), and $24,600 for estates and trusts (from $24,100). The phaseout threshold for joint returns or surviving spouses increased to $1,000,000 (from $160,900 in 2017), and the threshold for other taxpayers is half that joint amount.
Common questions
- What is the AMT exemption and how does it work?
- The AMT exemption is a fixed amount that reduces alternative minimum taxable income before the AMT is calculated. For 2018, the exemption is $109,400 for joint filers or surviving spouses, $70,300 for unmarried individuals, $54,700 for married individuals filing separately, and $24,600 for estates and trusts.
- What happens if my income exceeds the phaseout threshold?
- The exemption begins to phase out once alternative minimum taxable income exceeds a threshold. For 2018, the phaseout threshold for joint returns or surviving spouses is $1,000,000. The threshold for other taxpayers is half that amount.
What the alternative minimum tax actually is
The alternative minimum tax is a parallel tax system that runs alongside the regular income tax. It targets taxpayers who benefit from specific tax preferences - certain types of income that receive favorable treatment or deductions that significantly lower their regular tax liability. The AMT imposes a floor on how much these benefits can reduce total tax, ensuring that taxpayers with higher economic incomes pay at least a minimum amount. Taxpayers use Form 6251 to calculate their AMT liability by adjusting their regular taxable income and adding back certain preference items. If the resulting tentative minimum tax exceeds the regular tax, the difference is owed as AMT.
The AMT is a separate tax that is imposed in addition to your regular tax. It applies to taxpayers who have certain types of income that receive favorable treatment, or who qualify for certain deductions, under the tax law.
Instructions for Form 6251 (2018), Alternative Minimum Tax - Individuals (IRS)
When you have to file Form 6251
You must attach Form 6251 to your federal tax return if any one of four conditions applies. First, you file when the tentative minimum tax shown on line 7 exceeds your regular tax computed with certain adjustments on line 10. Second, you claim a general business credit and the related amounts on Form 3800 are greater than zero. Third, you take certain specialized credits, including the qualified electric vehicle credit, the personal-use portion of the alternative fuel vehicle refueling property credit, or the credit for prior year minimum tax. Fourth, the total of lines 2c through 3 is negative and line 7 would exceed line 10 without those items. Even if you do not owe AMT, meeting any of these tests means the form must accompany your return so the IRS can verify the calculation.
Attach Form 6251 to your return if any of the following statements is true. 1. Form 6251, line 7, is greater than line 10. 2. You claim any general business credit, and either line 6 (in Part I) of Form 3800 or line 25 of Form 3800 is more than zero. 3. You claim the qualified electric vehicle credit (Form 8834), the personal use part of the alternative fuel vehicle refueling property credit (Form 8911), or the credit for prior year minimum tax (Form 8801). 4. The total of Form 6251, lines 2c through 3, is negative and line 7 would be greater than line 10 if you did not take into account lines 2c through 3.
Instructions for Form 6251 (2018), Alternative Minimum Tax - Individuals (IRS)
How the exemption is taken away as income rises
The AMT exemption phases out as a taxpayer's alternative minimum taxable income (AMTI) rises above a threshold. For 2018, the phase-out threshold is $1,000,000 for married couples filing jointly or qualifying widow(er)s. The worksheet instructs taxpayers to subtract the threshold from their AMTI, then multiply the excess by 25% (0.25). This reduction amount is then subtracted from the full exemption. Each additional dollar of AMTI above the threshold therefore reduces the exemption by 25 cents. This reduction continues until the exemption reaches zero. The same 25% phase-out rate applies to all filing statuses, though the threshold amounts differ. Taxpayers whose AMTI is high enough lose the exemption entirely and must compute AMT without any exemption benefit, making the tax more burdensome at higher income levels.
5. Multiply line 4 by 25% (0.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Subtract line 5 from line 1. If zero or less, enter -0-. Also, enter this amount on Form 6251, line 5 and go to Form 6251, line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ 6.
Instructions for Form 6251 (2018), Alternative Minimum Tax - Individuals (IRS)
The two AMT rates and where the second one starts
The alternative minimum tax uses two rates: 26% and 28%. For 2018, the 26% rate applies to the first $191,100 of taxable excess (the amount on line 6 of Form 6251) for most taxpayers. For married individuals filing separately, the 26% rate applies to the first $95,550. Once taxable excess exceeds these amounts, the higher 28% rate applies to the amount above the threshold. To calculate the tax, taxpayers multiply the full amount by 28% and then subtract $3,822 (or $1,911 if married filing separately) from the result. This subtraction adjusts for the fact that the first portion should have been taxed at 26% rather than 28%. The two-rate structure means that as taxable excess increases, the marginal rate on additional income rises from 26% to 28%.
All others: If line 3 is $191,100 or less ($95,550 or less if married filing separately), multiply line 3 by 26% (0.26). Otherwise, multiply line 3 by 28% (0.28) and subtract $3,822 ($1,911 if married filing separately) from the result.
Instructions for Form 6251 (2018), Alternative Minimum Tax - Individuals (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Internal Revenue Bulletin 2018-10 (Rev. Proc. 2018-18) (IRS)
- Exemption, joint returns or surviving spouses
Joint Returns or Surviving Spouses $109,400
- Exemption, unmarried individuals
Unmarried Individuals (other than Surviving Spouses) $70,300
- Exemption, married individuals filing separate returns
Married Individuals Filing Separate Returns $54,700
- Exemption, estates and trusts
Estates and Trusts $24,600
- Exemption phaseout threshold, joint returns or surviving spouses
For taxable years beginning in 2018, the amounts used under § 55(d)(3) to de- termine the phaseout of the exemption amounts are: Joint Returns or Surviving Spouses $1,000,000