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AMT Changes Coming in 2026

AMT Changes Coming in 2026

⚠️ High earners: the AMT is coming back stronger.

The Tax Cuts and Jobs Act gave most taxpayers relief from the Alternative Minimum Tax (AMT). But starting in 2026, the OBBBA makes exemption phase-outs hit harder:

Thresholds drop to $500,000 (single) / $1,000,000 (married)

The phase-out percentage doubles from 25% → 50%

Who’s at risk?✔️ Investors with large capital gains✔️ Executives exercising stock options✔️ High-income taxpayers in high-tax states

💡 With careful planning—timing capital gains, stock option exercises, and deductions—you can reduce exposure.