2021 AMT Exemption
For 2021, the AMT Exemption figures are $114,600 (Exemption, joint returns or surviving spouses), $73,600 (Exemption, unmarried individuals), $57,300 (Exemption, married individuals filing separate returns) and 9 more figures below.
| Item | Joint returns or surviving spouses | Unmarried individuals | Married individuals filing separate returns | Estates and trusts |
|---|---|---|---|---|
| Exemption | $114,600 | $73,600 | $57,300 | $25,700 |
| Exemption phaseout threshold | $1,047,200 | $523,600 | $523,600 | $85,650 |
| Fully phased out | $1,505,600 | $818,000 | $752,800 | $188,450 |
Effective 2021-01-01Source: Rev. Proc. 2020-45 (IRS)Verified 2026-09-03
Compared with 2020
| Item | 2020 | 2021 | Change |
|---|---|---|---|
| Exemption, joint returns or surviving spouses | $113,400 | $114,600 | +$1,200 (+1.1%) |
| Exemption, unmarried individuals | $72,900 | $73,600 | +$700 (+1.0%) |
| Exemption, married individuals filing separate returns | $56,700 | $57,300 | +$600 (+1.1%) |
| Exemption, estates and trusts | $25,400 | $25,700 | +$300 (+1.2%) |
| Exemption phaseout threshold, joint returns or surviving spouses | $1,036,800 | $1,047,200 | +$10,400 (+1.0%) |
| Exemption phaseout threshold, unmarried individuals | $518,400 | $523,600 | +$5,200 (+1.0%) |
| Exemption phaseout threshold, married individuals filing separate returns | $518,400 | $523,600 | +$5,200 (+1.0%) |
| Exemption phaseout threshold, estates and trusts | $84,800 | $85,650 | +$850 (+1.0%) |
| Fully phased out, joint returns or surviving spouses | - | $1,505,600 | - |
| Fully phased out, unmarried individuals | - | $818,000 | - |
| Fully phased out, married individuals filing separate returns | - | $752,800 | - |
| Fully phased out, estates and trusts | - | $188,450 | - |
Exemption
Exemption phaseout threshold
Fully phased out
$25,700$1,505,600
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic - each faint line is ten times the one before it, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
Taxpayers subject to the Alternative Minimum Tax, including individuals filing joint returns, unmarried individuals, married individuals filing separate returns, and estates and trusts.
What changed this year, and why
For taxable years beginning in 2021, the IRS published updated Alternative Minimum Tax (AMT) exemption amounts and phaseout thresholds under IRC § 55.
Common questions
- What is the AMT exemption amount for each filing status in 2021?
- For joint returns or surviving spouses the exemption is $114,600. For unmarried individuals it is $73,600. For married individuals filing separate returns it is $57,300. For estates and trusts it is $25,700.
- At what income level does the AMT exemption begin to phase out for joint filers?
- For joint returns or surviving spouses, the exemption begins to phase out when alternative minimum taxable income exceeds $1,047,200.
Every amount on this page is a published figure rather than yours. The AMT exemption left on a joint return takes the number you enter and works it out against them, showing which published figure it used.
What the alternative minimum tax actually is
The alternative minimum tax (AMT) is a parallel tax system that runs alongside the regular income tax. It targets taxpayers who benefit from certain preferential tax treatment - such as favorable income classifications or special deductions - that might otherwise allow them to pay little or no federal income tax despite having substantial economic income. Rather than eliminating these tax benefits entirely, the AMT places a floor on how much they can reduce a taxpayer's overall liability. Taxpayers compute their tax under both the regular system and the AMT system, and owe the higher of the two amounts. The AMT has its own set of rules for what counts as income, what deductions are allowed, and what rates apply, which can differ significantly from regular tax treatment.
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. These tax benefits can significantly reduce the regular tax of some taxpayers with higher economic incomes. The AMT sets a limit on the amount these benefits can be used to reduce total tax.
Instructions for Form 6251 (2021), Alternative Minimum Tax - Individuals (IRS)
When you have to file Form 6251
Taxpayers must attach Form 6251 to their return if any of four conditions apply. First, file if line 7 (tentative minimum tax before credits) exceeds line 10, meaning the AMT calculation produces a positive amount after comparing against regular tax. Second, file if you claim a general business credit and either Part I line 6 or line 25 of Form 3800 is more than zero. Third, file if you claim certain specific credits: the qualified electric vehicle credit (Form 8834), the personal-use portion of the alternative fuel vehicle refueling property credit (Form 8911), or the credit for prior-year minimum tax (Form 8801). Fourth, file if the total of Form 6251 lines 2c through 3 is negative and line 7 would exceed line 10 without taking those lines into account. Meeting any one of these triggers requires filing the form.
Who Must File Attach Form 6251 to your return if any of the following statements are 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 didn’t take into account lines 2c through 3.
Instructions for Form 6251 (2021), Alternative Minimum Tax - Individuals (IRS)
How the exemption is taken away as income rises
The AMT exemption is reduced when a taxpayer's alternative minimum taxable income (AMTI) exceeds a phase-out threshold. Once AMTI reaches that threshold, the exemption is gradually eliminated. For 2021, if single or head of household, the exemption reaches zero when AMTI hits $818,000. If married filing jointly or a qualifying widow(er), the exemption is zero when AMTI equals or exceeds $1,505,600. If married filing separately, the exemption is zero at $752,800. Taxpayers whose AMTI equals or exceeds these upper amounts enter zero on the exemption line and skip the worksheet entirely. Those with AMTI below the zero-exemption point but above the phase-out threshold must complete the Exemption Worksheet to determine their reduced exemption amount. The verified phase-out threshold for joint returns or surviving spouses is $1,047,200, meaning the exemption begins shrinking once income passes that level.
Note. If Form 6251, line 4, is equal to or more than: $818,000 if single or head of household, $1,505,600 if married filing jointly or qualifying widow(er), or $752,800 if married filing separately, your exemption is zero. Don’t complete this worksheet; instead, enter the amount from Form 6251, line 4, on line 6 and go to line 7.
Instructions for Form 6251 (2021), Alternative Minimum Tax - Individuals (IRS)
The two AMT rates and where the second one starts
The AMT uses two rates: a 26% rate that applies to lower amounts of taxable excess, and a 28% rate that applies once taxable excess crosses a threshold. For 2021, the 26% rate applies to the first $199,900 of taxable excess ($99,950 if married filing separately). Any taxable excess above that threshold is taxed at 28%. The computation applies the 28% rate to the entire taxable excess amount and then subtracts a fixed dollar amount to adjust for the difference: subtract $3,998 if single or married filing jointly ($1,999 if married filing separately). This structure ensures the marginal rate on amounts above the threshold is effectively 28%, while income below the threshold is taxed at 26%. The taxable excess amount appears on Form 6251, line 6, and the computed tax goes on line 7.
All other Form 1040-NR filers, don’t complete Part III. Instead, if Form 6251, line 6, is $199,900 or less ($99,950 or less if married filing separately), figure the amount to enter on line 7 by multiplying line 6 by 26% (0.26). Otherwise, figure the amount to enter on line 7 by multiplying line 6 by 28% (0.28) and subtracting $3,998 ($1,999 if married filing separately) from the result.
Instructions for Form 6251 (2021), Alternative Minimum Tax - Individuals (IRS)
AMT you pay this year can become a credit against regular tax in a future year
Alternative Minimum Tax you pay in one year can reduce your regular tax liability in later years through the Credit for Prior Year Minimum Tax. If you paid AMT for 2020, or if you had a minimum tax credit carryforward on your 2020 Form 8801, you may be able to claim a credit in 2021. Similarly, if you pay AMT for 2021, you may be able to take a credit on Form 8801 for 2022. The credit is claimed on Form 8801, Credit for Prior Year Minimum Tax - Individuals, Estates, and Trusts. The credit is designed to prevent double taxation by allowing the AMT you paid (which is attributable to deferral adjustments, such as the exercise of incentive stock options) to be used to offset regular tax in a future year when those same items reverse and increase your regular tax.
Credit for Prior Year Minimum Tax See Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts, if you paid AMT for 2020 or you had a minimum tax credit carryforward on your 2020 Form 8801. If you pay AMT for 2021, you may be able to take a credit on Form 8801 for 2022.
Instructions for Form 6251 (2021), Alternative Minimum Tax - Individuals (IRS)
Your tentative minimum tax caps how far certain credits can reduce your regular tax
Certain nonrefundable personal credits cannot reduce your regular tax below your tentative minimum tax. This rule, called the tax liability limit, applies to credits such as the general business credit, the qualified electric vehicle credit, the personal use part of the alternative fuel vehicle refueling property credit, and the credit for prior year minimum tax (Form 8801). If the sum of these credits would otherwise reduce your regular tax below the amount of your tentative minimum tax (calculated on Form 6251, line 9), the credits are limited to the excess of your regular tax over your tentative minimum tax. In other words, your tentative minimum tax acts as a floor: these credits can only offset the portion of your regular tax that exceeds it. You must use the worksheet in the instructions for Form 6251 to figure the tax liability limit on the credits.
Also use Form 6251 to figure your tentative minimum tax (Form 6251, line 9). You may need to know that amount to figure the tax liability limit on the credits listed under Who Must File, earlier.
Instructions for Form 6251 (2021), Alternative Minimum Tax - Individuals (IRS)
Sell ISO stock too soon and you owe a reconciling AMT adjustment
If you sell stock you acquired by exercising an incentive stock option before meeting the required holding periods, the sale is a disqualifying disposition. For regular tax purposes, a disqualifying disposition generates ordinary income in the year of sale. This ordinary income was not taken into account when you calculated your AMT adjustment in the year you exercised the option, so you must now make a reconciling adjustment on Form 6251. The ordinary income from the disqualifying disposition is reported as an adjustment because it represents income that was already included in alternative minimum taxable income in the year of exercise (through the ISO adjustment) but is now being recognized for regular tax purposes in the year of sale. This adjustment prevents the same income from being taxed twice under the AMT system. You must first figure any ordinary income adjustment related to the disqualifying disposition, then refigure the applicable forms and schedules for the AMT.
3. Ordinary income from the disposition of property not already taken into account in (1) or (2) or on any other line on Form 6251, such as a disqualifying disposition of stock acquired in a prior year by exercising an incentive stock option; and 4. Capital gain or loss (including any carryover that is different for the AMT) reported on Form 8949, Sales and Other Dispositions of Capital Assets, or Schedule D (Form 1040), Capital Gains and Losses. First figure any ordinary income adjustment related to (3) above. Then, refigure Form 4684, Form 4797, Form 8949, and Schedule D for the AMT, if applicable, by taking into account any adjustments
Instructions for Form 6251 (2021), 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.
Rev. Proc. 2020-45 (IRS)
- Exemption, joint returns or surviving spouses
Joint Returns or Surviving Spouses $114,600
- Exemption, unmarried individuals
Unmarried Individuals (other than Surviving Spouses) $73,600
- Exemption, married individuals filing separate returns
Married Individuals Filing Separate Returns $57,300
- Exemption, estates and trusts
Estates and Trusts $25,700
- Exemption phaseout threshold, joint returns or surviving spouses
For taxable years beginning in 2021, the amounts used under § 55(d)(2) to determine the phaseout of the exemption amounts are: Threshold Complete Phaseout amount Phaseout amount Joint Returns or Surviving Spouses $1,047,200 $1,505,600
- Exemption phaseout threshold, unmarried individuals
Unmarried Individuals (other than $523,600 $818,000 Surviving Spouses)
- Exemption phaseout threshold, married individuals filing separate returns
Married Individuals Filing Separate $523,600 $752,800 Returns
- Exemption phaseout threshold, estates and trusts
Estates and Trusts $85,650 $188,450
- Fully phased out, joint returns or surviving spouses
Joint Returns or Surviving Spouses $1,047,200 $1,505,600
- Fully phased out, unmarried individuals
Unmarried Individuals (other than $523,600 $818,000 Surviving Spouses)
- Fully phased out, married individuals filing separate returns
Married Individuals Filing Separate $523,600 $752,800 Returns
- Fully phased out, estates and trusts
Estates and Trusts $85,650 $188,450