What is the range of the Alternative Minimum Tax Rate?

The range of the Alternative Minimum Tax (AMT) rate is indeed 26% to 28%. This system was designed to ensure that individuals who benefit from various tax deductions and credits still pay a minimum level of tax.

For individuals subject to AMT, income is calculated differently than under the regular tax system, and two rates apply: the first rate of 26% applies to alternative minimum taxable income (AMTI) up to a certain threshold, and the second rate of 28% applies to AMTI above this threshold.

Understanding this structure is important for recognizing how AMT can affect tax liability, especially for higher-income earners who may have substantial deductions that could otherwise reduce their taxable income under the regular tax system. The other ranges provided do not reflect the current AMT structure; hence, they are not applicable for the purpose of this question.