ISO AMT Calculator
Estimate the alternative minimum tax an incentive stock option exercise can trigger, and how many shares stay under it.
This is an estimate based on the numbers you have entered, not financial advice. NetWorthy never recommends a specific security and never moves money on your behalf.
$17,627.00
Estimated AMT owed
$27,627.00
Cash needed to exercise
3,220
Shares you could exercise AMT-free
$100,000.00
Bargain element
$32,267.00
Regular tax
$49,894.00
Tentative minimum tax
A simplified educational estimate for the 2025 tax year, not a tax filing. Exercising an ISO and holding creates no ordinary income, but the spread is an AMT preference item — so a paper gain can produce a real cash bill in a year you sold nothing. The AMT credit carried into later years, the separate AMT basis on an eventual sale, disqualifying dispositions, and state AMT are all outside this model. Talk to a tax professional before exercising.