AMT Calculator
Estimate the alternative minimum tax triggered by exercising incentive stock options — and how many options you could exercise with no AMT at all.
Estimated result
- Bargain element (AMT income added)
- $105,000
- Cash to exercise (strike cost)
- $15,000
- Regular federal tax
- $74,547
- Tentative minimum tax
- $83,950
- Additional AMT owed
- $9,403
- Tax-free bargain element (crossover)
- $71,419
- Shares exercisable with no AMT
- 6,801 shares
Simplified federal estimate using current-year exemption and phase-out figures. It ignores state AMT, capital gains stacking and itemised deductions. Confirm with a tax professional before exercising.
New to this? Read: What is the AMT on an ISO exercise?
Related guides
Exercising incentive stock options can trigger the Alternative Minimum Tax even without a sale. Here's why, with a full worked example.
The AMT crossover point: exercising ISOs tax-freeThe crossover is the exact exercise size where AMT starts to bite. Below it, your ISO exercise costs nothing in tax.
How to avoid AMT when exercising ISOsYou can usually exercise a meaningful number of ISOs each year with zero AMT. The trick is sizing the exercise.
What is the AMT credit, and how do you get it back?Overpaid AMT from an ISO exercise isn't lost. Learn how the AMT credit is generated, recovered via Form 8801, and carried forward.