AMT (Alternative Minimum Tax)
Minimum tax for high-income earners with large deductions
The AMT ensures that individuals with high incomes who use large deductions (such as RRSP deductions, capital gains exemptions) pay at least a minimum amount of federal tax. The AMT rate is 20.5% on adjusted taxable income above $173,205 (2024). Any AMT paid can be credited back in future years.