Tax simulator

AMT exposure estimator

Exercising incentive stock options can trigger a tax bill on a gain you have not actually cashed out. This estimates your exposure to the Alternative Minimum Tax: whether a given exercise pushes you into AMT, how much extra tax it adds this year, and where the AMT exemption phaseout quietly raises your rate. It shows the numbers so the cost of a large exercise is visible before you make it.

Background reading: Equity compensation

Additional AMT this year

$62,748

Tentative minimum tax exceeds your regular tax; this is the extra owed on a paper gain.

Regular versus AMT

Regular tax$68,134

Tentative minimum tax$130,882

Additional AMT owed$62,748

In AMTYes

AMT marginal rate42.0%

In exemption phaseout bandYes

Tax year2026

Where this goes next

This estimates your AMT exposure; it does not tell you whether or when to exercise. That decision is a conversation with a CFP.

Assumptions and simplifications

AMTI is approximated as total income plus the AMT preference (typically the ISO bargain element); AMT disallows the standard deduction. Other preference items are not modeled.
The AMT interaction is non-additive and is a structural approximation, flagged for licensed calculation logic and the pre-launch review.
This is a federal AMT estimate; state AMT and the AMT credit in later years are out of scope.