🚨 Significant 2024 AMT Expansion — Now Catches More Canadians:
The 2024 Federal Budget dramatically expanded the AMT. Key changes: the AMT rate rose from 15% to 20.5%, the capital gains inclusion rate under AMT rose from 80% to 100%, and the basic exemption rose to $173,205 (indexed). Anyone with capital gains over $250,000, large stock option benefits, or large charitable donations should calculate their AMT liability.
AMT Liability Estimator
Input your tax year figures to estimate if you owe Alternative Minimum Tax:
What the 2024 AMT Changes Mean for You
- Capital Gains: Under regular tax, only 50% (or 66.7% over $250K) of gains are taxable. Under AMT, 100% is included in your adjusted minimum income base — meaning large one-time gains like selling a cottage or business can trigger significant AMT.
- Charitable Donation Credit: Under regular tax, the donation tax credit reduces your full tax owing. Under AMT, only 80.5% of the credit is permitted. Large donation strategies (donating flow-through shares) are most affected.
- Carry-Forward Credit: Any AMT you pay can be carried forward for up to 7 years and used to offset regular federal tax in future years when your income is lower.
- Trusts Now Subject to AMT: Since 2024, graduated rate trusts and family trusts are also subject to AMT at the 20.5% rate — previously only individuals were covered.
Official Government References & Sources
• CRA T691 — Alternative Minimum Tax Form: canada.ca/t691-amt-form
• Finance Canada — 2024 Budget AMT Expansion: canada.ca/budget-2024
AMT 2024 Key Changes
AMT Rate (2024+)20.5% Federal
Capital Gains Inclusion100% Under AMT
Basic AMT Exemption$173,205
AMT Carry-Forward7 Years