In lieu of the tax computed using the above rates, the individual AMT may be imposed under a two-tier rate structure of 26% and 28%. For tax year 2022, the 28% tax rate applies to taxpayers with taxable incomes above USD 206,100 (USD 103,050 for married individuals filing separately). For tax year 2023, the 28% tax rate applies to taxpayers with taxable incomes above USD 220,700 (USD 110,350 for married individuals filing separately).

For 2022, the AMT exemption amount is USD 118,100 for married taxpayers filing a joint return (half this amount for married taxpayers filing a separate return) and USD 75,900 for all other taxpayers (other than estates and trusts), and the phase-out thresholds are USD 1,079,800 for married taxpayers filing a joint return and USD 539,900 for all other taxpayers (other than estates and trusts). For 2023, the AMT exemption amount is USD 126,500 for joint filers (half of this amount for married taxpayers filing a separate return), and USD 81,300 for all other taxpayers other than estates and trusts. The phase-out thresholds increase to USD 1,156,300 for joint filers and USD 578,150 for all other taxpayers other than estates and trusts.

The AMT is payable only to the extent it exceeds the regular net tax liability. The foreign tax credit is available for determining AMT liability to the extent of the foreign tax on the foreign-source AMT income (AMTI), subject to certain limitations.

AMTI generally is computed by starting with regular taxable income, adding tax preference deductions (claimed in the computation of regular taxable income), and making special adjustments to some of the tax items that were used to calculate taxable income. For example, the taxpayer must add back all state and local income taxes deducted in computing regular taxable income.

For non-resident aliens with a net gain from the sale of US real property interests, the AMT is calculated on the lesser of AMTI (before the exemption) or the net gain from the sale of the US real property interest.

For tax years beginning after 31 December 2012, a 3.8% 'unearned income Medicare contribution' tax applies on the lesser of (i) the taxpayer's net investment income for the tax year or (ii) the taxpayer's excess modified adjusted gross income over a threshold amount (generally, USD 200,000 for single taxpayers and heads of households; USD 250,000 for a married couple filing a joint return and surviving spouses; and USD 125,000 for a married individual filing a separate return). The tax, which is in addition to the regular income tax liability, applies to all individuals subject to US taxation other than non-resident aliens. Net investment income generally includes non-business income from interest, dividends, annuities, royalties, and rents; income from a trade or business of trading financial instruments or commodities; income from a passive-activity trade or business; and net gain from the disposition of non-business property.

Most states, and a number of municipal authorities, impose income taxes on individuals working or residing within their jurisdictions. Most of the 50 states impose some personal income tax, with the exception of Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming, which have no state income tax. New Hampshire and Tennessee (until 1 January 2021) tax only dividend and interest income. Few states impose an income tax at rates that exceed 10%.