question.jpgIn Federal Income Tax

What is the alternative minimum tax (AMT) rate?

Once you have calculated your alternative minimum taxable income, it is taxed at a rate that may differ from your regular income tax rate. Specifically, for the 2006 tax year, if your alternative minimum taxable income is $175,000 or less (or $87,500 or less if you’re married filing separately), the AMT will be 26% of that income amount. If the income is over $175,000 (or $87,500), the first $175,000 (or $87,500) is taxed at 26% and the amount in excess of $175,000 (or $87,500) is taxed at 28%.