2023 AMT Exemption
For 2023, the AMT Exemption figures are $126,500 (Exemption, joint returns or surviving spouses), $81,300 (Exemption, unmarried individuals), $63,250 (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 | $126,500 | $81,300 | $63,250 | $28,400 |
| Exemption phaseout threshold | $1,156,300 | $578,150 | $578,150 | $94,600 |
| Fully phased out | $1,662,300 | $903,350 | $831,150 | $208,200 |
Effective 2023-01-01Source: Rev. Proc. 2022-38 (IRS)Verified 2026-09-03
Compared with 2022
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Exemption, joint returns or surviving spouses | $118,100 | $126,500 | +$8,400 (+7.1%) |
| Exemption, unmarried individuals | $75,900 | $81,300 | +$5,400 (+7.1%) |
| Exemption, married individuals filing separate returns | $59,050 | $63,250 | +$4,200 (+7.1%) |
| Exemption, estates and trusts | $26,500 | $28,400 | +$1,900 (+7.2%) |
| Exemption phaseout threshold, joint returns or surviving spouses | $1,079,800 | $1,156,300 | +$76,500 (+7.1%) |
| Exemption phaseout threshold, unmarried individuals | $539,900 | $578,150 | +$38,250 (+7.1%) |
| Exemption phaseout threshold, married individuals filing separate returns | $539,900 | $578,150 | +$38,250 (+7.1%) |
| Exemption phaseout threshold, estates and trusts | $88,300 | $94,600 | +$6,300 (+7.1%) |
| Fully phased out, joint returns or surviving spouses | $1,552,200 | $1,662,300 | +$110,100 (+7.1%) |
| Fully phased out, unmarried individuals | $843,500 | $903,350 | +$59,850 (+7.1%) |
| Fully phased out, married individuals filing separate returns | $776,100 | $831,150 | +$55,050 (+7.1%) |
| Fully phased out, estates and trusts | $194,300 | $208,200 | +$13,900 (+7.2%) |
Exemption
Exemption phaseout threshold
Fully phased out
$28,400$1,662,300
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 who compute liability under the alternative minimum tax for taxable years beginning in 2023.
What changed this year, and why
The IRS published the 2023 inflation-adjusted exemption amounts and phaseout thresholds for the alternative minimum tax.
Common questions
- What is the AMT exemption?
- It is a dollar amount that qualifying taxpayers may subtract when computing alternative minimum tax liability. The exemption phases out once alternative minimum taxable income exceeds a threshold.
- What are the exemption amounts for 2023?
- Joint returns or surviving spouses: $126,500. Unmarried individuals: $81,300. Married individuals filing separate returns: $63,250. Estates and trusts: $28,400.
- What is the phaseout threshold for 2023?
- Once alternative minimum taxable income passes a threshold, the exemption is reduced dollar-for-dollar at a rate set by the phaseout rules. For joint returns or surviving spouses, the phaseout threshold is $1,156,300.
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 is a parallel income tax that runs alongside the regular federal income tax. It targets taxpayers who otherwise use favorable tax treatments - such as preferential rates on certain kinds of income or large deductions - to substantially lower their regular tax bill despite having higher economic incomes. The AMT places a floor on those benefits so they cannot reduce total tax below a minimum level. If the AMT calculation produces a figure larger than the regular tax, the taxpayer owes the difference as an additional amount. Form 6251 is the worksheet used to compute both the AMT liability and the tentative minimum tax, which also serves as a cap on certain nonrefundable credits.
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 (2023), Alternative Minimum Tax - Individuals (IRS)
When you have to file Form 6251
You must attach Form 6251 to your tax return if any one of four conditions is met. The most common trigger is that the tentative AMT computed on line 7 of the form exceeds the regular tax shown on line 10, meaning the alternative minimum system produces a higher liability than the ordinary calculation. You also must file the form if you claim certain specific credits - the general business credit (with limits tied to amounts on Form 3800), 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. A fourth condition applies when adjustments and preference items on lines 2c through 3 total a negative amount that, if ignored, would push line 7 above line 10. Even if none of these tests is met, you may still need Form 6251 to compute a tentative minimum tax used to cap other credits.
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 (2023), Alternative Minimum Tax - Individuals (IRS)
How the exemption is taken away as income rises
The AMT exemption phases out as alternative minimum taxable income rises above a threshold. The exemption amounts for 2023 are: $126,500 for joint returns or surviving spouses, $81,300 for unmarried individuals, $63,250 for married individuals filing separate returns, and $28,400 for estates and trusts. For joint filers and surviving spouses, the phaseout begins at $1,156,300 of alternative minimum taxable income. Once your income reaches certain higher levels, the exemption is completely eliminated. Specifically, if Form 6251, line 4, equals or exceeds $903,350 for single or head of household filers, $1,662,300 for married filing jointly or qualifying surviving spouses, or $831,150 for married filing separately, your exemption is zero. The worksheet reduces the exemption amount by a percentage of the income above the phaseout threshold until it reaches zero at these higher income levels.
Note. If Form 6251, line 4, is equal to or more than $903,350 if single or head of household, $1,662,300 if married filing jointly or qualifying surviving spouse, or $831,150 if married filing separately, your exemption is zero.
Instructions for Form 6251 (2023), Alternative Minimum Tax - Individuals (IRS)
The two AMT rates and where the second one starts
The alternative minimum tax uses two rates: a lower rate of 26% and a higher rate of 28%. For 2023, the 26% rate applies to the first $220,700 of taxable excess for most filers ($110,350 if married filing separately). Any taxable excess above that threshold is taxed at the 28% rate. Rather than applying the 28% rate only to the amount over the threshold, the instructions have you multiply the entire taxable excess by 28% and then subtract $4,414 ($2,207 if married filing separately) from the result. That subtraction is a constant that corrects for the fact that the first portion was already taxed at 26%, so the combined calculation produces the same total as if you had split the excess at the threshold and applied each rate separately. The taxable excess is the amount on line 6 of Form 6251 after subtracting the exemption.
All other Form 1040-NR filers, don’t complete Part III. Instead, if Form 6251, line 6, is $220,700 or less ($110,350 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 $4,414 ($2,207 if married filing separately) from the result.
Instructions for Form 6251 (2023), Alternative Minimum Tax - Individuals (IRS)
AMT you pay this year can become a credit against regular tax in a future year
If you pay alternative minimum tax for a tax year, that payment does not necessarily disappear. The IRS allows you to carry forward the AMT you paid and claim it as a Credit for Prior Year Minimum Tax in a future year when your regular tax exceeds your tentative minimum tax. For 2023, you should look at Form 8801, Credit for Prior Year Minimum Tax - Individuals, Estates, and Trusts, if you paid AMT for 2022 or if you had a minimum tax credit carryforward from your 2022 return. Similarly, if you pay AMT for 2023, you may be able to take a credit on your 2024 Form 8801. This mechanism ensures that AMT functions as a timing difference rather than a permanent penalty, allowing taxpayers to recover prior-year minimum tax as a credit against future regular tax liability.
See Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts, if you paid AMT for 2022 or you had a minimum tax credit carryforward on your 2022 Form 8801. If you pay AMT for 2023, you may be able to take a credit on Form 8801 for 2024.
Instructions for Form 6251 (2023), Alternative Minimum Tax - Individuals (IRS)
Your tentative minimum tax caps how far certain credits can reduce your regular tax
The tentative minimum tax you compute on Form 6251 serves a second purpose beyond calculating your AMT liability for the year: it establishes a ceiling on how much of certain nonrefundable credits can reduce your regular tax. Without this cap, some taxpayers could use credits to eliminate regular tax entirely even though their economic income is high enough that the AMT system says they should pay some minimum tax. To apply the limitation correctly, you must know your tentative minimum tax amount (line 9 of Form 6251) and compare it against the credits that are subject to the restriction. The instructions list the affected credits in the "Who Must File" section of the form.
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 (2023), 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. 2022-38 (IRS)
- Exemption, joint returns or surviving spouses
Joint Returns or Surviving Spouses $126,500
- Exemption, unmarried individuals
Unmarried Individuals (other than Surviving Spouses) $81,300
- Exemption, married individuals filing separate returns
Married Individuals Filing Separate Returns $63,250
- Exemption, estates and trusts
Estates and Trusts $28,400
- Exemption phaseout threshold, joint returns or surviving spouses
For taxable years beginning in 2023, 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 $1,156,300 $1,662,300
- Exemption phaseout threshold, unmarried individuals
Unmarried Individuals (other than $578,150 $903,350 Surviving Spouses)
- Exemption phaseout threshold, married individuals filing separate returns
Married Individuals Filing Separate $578,150 $831,150 Returns
- Exemption phaseout threshold, estates and trusts
Estates and Trusts $94,600 $208,200
- Fully phased out, joint returns or surviving spouses
Joint Returns or Surviving Spouses $1,156,300 $1,662,300
- Fully phased out, unmarried individuals
Unmarried Individuals (other than $578,150 $903,350 Surviving Spouses)
- Fully phased out, married individuals filing separate returns
Married Individuals Filing Separate $578,150 $831,150 Returns
- Fully phased out, estates and trusts
Estates and Trusts $94,600 $208,200