T691 is the CRA form individuals use to calculate federal tax under the alternative minimum tax (AMT). You add back certain deductions and tax breaks to get adjusted taxable income, subtract a basic exemption of $177,882 for 2025, and apply a 20.5% rate; if that minimum amount is more than your regular federal tax, you pay the difference, which you may recover later.
Everything here comes from the 2025 T691 (T691 E (25)) and the CRA T691 form page, as of October 2026.
Who T691 applies to, and who it skips
| Situation | Use T691? |
|---|---|
| Individual whose adjusted taxable income may be over the basic exemption | Yes, to check whether AMT applies |
| No AMT this year but a carryover from earlier years to apply | Yes: complete Parts 1, 2 and 8 |
| Trust | No: the trust's T3 return uses T3 Schedule 12, Minimum Tax |
| Person who died in 2025 | No: AMT doesn't apply |
| Returns filed under subsections 70(2) or 150(4) or paragraphs 104(23)(d) or 128(2)(e) of the Income Tax Act | No |
Attach a completed copy to a paper T1 return. If you had business income from another province or territory or another country, you may also need Form T2203.
What gets added back in Part 1
Part 1 starts with taxable income from line 26000 and adds back items AMT treats less generously. On the 2025 form these include:
- Capital cost allowance and carrying charges on rental and leasing property, and on certified film property acquired before March 1996, beyond the income they produce.
- Losses and deductions from tax shelters and limited or non-active partnerships.
- Resource and flow-through share deductions, from Part 9.
- 30% of capital gains on gifts of publicly listed securities, after the T1170 adjustment.
- Security options deductions from boxes 39 and 91 of your T4 slips, minus 40% of gifts of listed securities acquired under an option plan.
- Differences in losses of other years claimed on lines 25100, 25200 and 25300.
The 50% rule for some deductions
Here's the 2025 detail people miss. A group of everyday deductions is only partly allowed under AMT. Union and professional dues, child care expenses, disability supports, moving expenses, CPP or QPP contributions on self-employment and enhanced contributions, the clergy residence deduction, northern residents deductions, interest and financing expenses on borrowing to earn property income, investment counsel fees, and certain employment expenses are added up, and the form applies a 50% rate to that total on line 79. So a claim you made in full on your return counts for only half when AMT is calculated.
From adjusted taxable income to tax owed
- Adjusted taxable income is line 93.
- Subtract the basic exemption on line 94: $177,882 for 2025, as of October 2026.
- Multiply what's left by the 20.5% federal rate to get the gross minimum amount.
- Subtract 50% of net non-refundable tax credits, 80% of donations and gifts, the federal logging tax credit and the section 119 former resident credit.
- If that minimum amount, after the special foreign tax credit, is more than your regular federal tax, Part 6 works out tax under AMT, entered on line 41700 of your return.
If line 95 or line 103 comes out at zero, you're not subject to AMT for the year.
Getting AMT back: the carryover
AMT you pay isn't necessarily lost. Part 7 works out the additional tax that becomes a minimum tax carryover, and Part 8 applies earlier carryovers against this year's tax. The 2025 form uses carryovers from 2018 to 2024, so each year's amount can be used for up to 7 years. You claim it on line 40427 of your return, limited to your regular tax above the minimum amount for the year. Any unapplied 2018 carryover drops off, and the rest rolls into 2026.
Why AMT hits some years and not others
AMT is designed to catch years when a lot of income is sheltered by deductions and preferential treatment. On the 2025 form the triggers sit in Part 1: large capital gains, security options deductions, donated listed shares, tax shelter and limited partnership losses, resource deductions and carrying charges. A year with none of these rarely produces an AMT bill, which is why most people only meet T691 once or twice.
Getting the form
The CRA publishes the 2025 T691 as an accessible fillable PDF and a standard print PDF, with earlier years still available. You must download the fillable version and open it in Acrobat Reader 10 or later rather than in your browser. Most tax software completes the form for you, but it's worth reading the printed version once to see which of your own deductions it touches.
Foreign income and AMT
Part 4 gives a special foreign tax credit under AMT, worked out from foreign business and non-business income and the foreign taxes paid on it. The CRA notes that any foreign tax paid above what a tax treaty requires is a voluntary contribution and doesn't count as foreign tax paid.
The verdict
If you had a large capital gain, exercised stock options, gave listed shares to charity or claimed big shelter or carrying-charge deductions in 2025, run T691 even if your software doesn't flag it. And if you paid AMT in any year since 2018, check Part 8 every year: it's tax you can get back once your regular tax is high enough.
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Frequently asked questions
What is the T691 form?
It's the CRA form individuals use to calculate federal tax payable under the alternative minimum tax.
What is the AMT basic exemption for 2025?
$177,882, as shown on line 94 of the 2025 T691, as of October 2026.
What is the AMT rate in Canada for 2025?
The federal rate on the 2025 T691 is 20.5%, applied to net adjusted taxable income.
Do trusts use T691?
No. Trusts use T3 Schedule 12, Minimum Tax.
Does AMT apply in the year someone dies?
No. AMT doesn't apply to a person who died in 2025.
How long can I carry forward AMT in Canada?
The 2025 form applies carryovers from 2018 to 2024, so each year's AMT can be recovered over the following 7 years, claimed on line 40427.
Where does AMT go on my tax return?
The federal tax payable under AMT from Part 6 of T691 goes on line 41700 of your return.
Which deductions are only half allowed under AMT?
On the 2025 form, items such as union dues, child care, moving expenses, carrying charges and investment counsel fees are totalled and a 50% rate applies on line 79.
Do I attach T691 to my return?
Attach a completed copy to a paper return, including when you're only applying a carryover from earlier years.
