diff --git a/pcsx2/GS/GSState.cpp b/pcsx2/GS/GSState.cpp
index 991a34860b..f9ddcab9ae 100644
--- a/pcsx2/GS/GSState.cpp
+++ b/pcsx2/GS/GSState.cpp
@@ -3689,7 +3689,7 @@ void GSState::CalcAlphaMinMax(const int tex_alpha_min, const int tex_alpha_max)
 		return;
 
 	// We wanted to force an update as we now know the alpha of the non-indexed texture.
-	// Limit max to 255 as we send 500 when we don't know, makes calculating 16bit easier.
+	// Limit max to 255 as we send 500 when we don't know, makes calculating 24/16bit easier.
 	int min = tex_alpha_min, max = std::min(tex_alpha_max, 255);
 
 	if (IsCoverageAlpha())
@@ -3712,12 +3712,14 @@ void GSState::CalcAlphaMinMax(const int tex_alpha_min, const int tex_alpha_max)
 					a.w = max;
 					break;
 				case 1:
-					a.y = env.TEXA.AEM ? 0 : env.TEXA.TA0;
-					a.w = env.TEXA.TA0;
+					// If we're using the alpha from the texture, not the whole range, we can just use tex_alpha_min/max.
+					// AEM and TA0 re precomputed with GSBlock::ReadAndExpandBlock24, so already worked out for tex_alpha.
+					a.y = (tex_alpha_max < 500) ? min : (env.TEXA.AEM ? 0 : env.TEXA.TA0);
+					a.w = (tex_alpha_max < 500) ? max : env.TEXA.TA0;
 					break;
 				case 2:
 					// If we're using the alpha from the texture, not the whole range, we can just use tex_alpha_min/max.
-					// TA0/TA1 is precomputed with GSBlock::ReadAndExpandBlock16, so already worked out for tex_alpha.
+					// AEM, TA0 and TA1 are precomputed with GSBlock::ReadAndExpandBlock16, so already worked out for tex_alpha.
 					a.y = (tex_alpha_max < 500) ? min : (env.TEXA.AEM ? 0 : std::min(env.TEXA.TA0, env.TEXA.TA1));
 					a.w = (tex_alpha_max < 500) ? max : std::max(env.TEXA.TA0, env.TEXA.TA1);
 					break;
diff --git a/pcsx2/GS/Renderers/HW/GSTextureCache.cpp b/pcsx2/GS/Renderers/HW/GSTextureCache.cpp
index cce19b97f4..eecae12f65 100644
--- a/pcsx2/GS/Renderers/HW/GSTextureCache.cpp
+++ b/pcsx2/GS/Renderers/HW/GSTextureCache.cpp
@@ -3646,17 +3646,25 @@ GSTextureCache::Source* GSTextureCache::CreateSource(const GIFRegTEX0& TEX0, con
 		src->m_target = true;
 		src->m_from_target = dst;
 		src->m_from_target_TEX0 = dst->m_TEX0;
-		src->m_alpha_minmax.first = dst->m_alpha_min;
-		src->m_alpha_minmax.second = dst->m_alpha_max;
 
-		// This is a bit rough, since if AEM is on, without rescanning the whole texture, we don't know if anything is transparent, so just go the hard way.
-		if (!dst->m_32_bits_fmt)
+		if ((src->m_TEX0.PSM & 0xf) == PSMCT24)
 		{
-			const bool using_both = (src->m_alpha_minmax.first ^ src->m_alpha_minmax.second) & 128;
-			const bool using_ta1 = (src->m_alpha_minmax.second & 128);
+			src->m_alpha_minmax.first = TEXA.AEM ? 0 : TEXA.TA0;
+			src->m_alpha_minmax.second = TEXA.TA0;
+		}
+		else
+		{
+			src->m_alpha_minmax.first = dst->m_alpha_min;
+			src->m_alpha_minmax.second = dst->m_alpha_max;
 
-			src->m_alpha_minmax.first = TEXA.AEM ? 0 : (using_both ? std::min(TEXA.TA1, TEXA.TA0) : (using_ta1 ? TEXA.TA1 : TEXA.TA0));
-			src->m_alpha_minmax.second = (using_both ? std::max(TEXA.TA1, TEXA.TA0) : (using_ta1 ? TEXA.TA1 : TEXA.TA0));
+			if (!dst->m_32_bits_fmt)
+			{
+				const bool using_both = (src->m_alpha_minmax.first ^ src->m_alpha_minmax.second) & 128;
+				const bool using_ta1 = (src->m_alpha_minmax.second & 128);
+
+				src->m_alpha_minmax.first = TEXA.AEM ? 0 : (using_both ? std::min(TEXA.TA1, TEXA.TA0) : (using_ta1 ? TEXA.TA1 : TEXA.TA0));
+				src->m_alpha_minmax.second = (using_both ? std::max(TEXA.TA1, TEXA.TA0) : (using_ta1 ? TEXA.TA1 : TEXA.TA0));
+			}
 		}
 
 		if (psm.pal > 0)
@@ -3698,17 +3706,25 @@ GSTextureCache::Source* GSTextureCache::CreateSource(const GIFRegTEX0& TEX0, con
 		src->m_from_target_TEX0 = dst->m_TEX0;
 		src->m_valid_rect = dst->m_valid;
 		src->m_end_block = dst->m_end_block;
-		src->m_alpha_minmax.first = dst->m_alpha_min;
-		src->m_alpha_minmax.second = dst->m_alpha_max;
 
-		// This is a bit rough, since if AEM is on, without rescanning the whole texture, we don't know if anything is transparent, so just go the hard way.
-		if (!dst->m_32_bits_fmt)
+		if ((src->m_TEX0.PSM & 0xf) == PSMCT24)
 		{
-			const bool using_both = (src->m_alpha_minmax.first ^ src->m_alpha_minmax.second) & 128;
-			const bool using_ta1 = (src->m_alpha_minmax.second & 128);
+			src->m_alpha_minmax.first = TEXA.AEM ? 0 : TEXA.TA0;
+			src->m_alpha_minmax.second = TEXA.TA0;
+		}
+		else
+		{
+			src->m_alpha_minmax.first = dst->m_alpha_min;
+			src->m_alpha_minmax.second = dst->m_alpha_max;
 
-			src->m_alpha_minmax.first = TEXA.AEM ? 0 : (using_both ? std::min(TEXA.TA1, TEXA.TA0) : (using_ta1 ? TEXA.TA1 : TEXA.TA0));
-			src->m_alpha_minmax.second = (using_both ? std::max(TEXA.TA1, TEXA.TA0) : (using_ta1 ? TEXA.TA1 : TEXA.TA0));
+			if (!dst->m_32_bits_fmt)
+			{
+				const bool using_both = (src->m_alpha_minmax.first ^ src->m_alpha_minmax.second) & 128;
+				const bool using_ta1 = (src->m_alpha_minmax.second & 128);
+
+				src->m_alpha_minmax.first = TEXA.AEM ? 0 : (using_both ? std::min(TEXA.TA1, TEXA.TA0) : (using_ta1 ? TEXA.TA1 : TEXA.TA0));
+				src->m_alpha_minmax.second = (using_both ? std::max(TEXA.TA1, TEXA.TA0) : (using_ta1 ? TEXA.TA1 : TEXA.TA0));
+			}
 		}
 
 		dst->Update();
@@ -5210,8 +5226,16 @@ void GSTextureCache::Target::Update()
 		g_gs_device->DrawMultiStretchRects(drects, ndrects, m_texture, shader);
 	}
 
-	m_alpha_min = 0;
-	m_alpha_max = m_32_bits_fmt ? 255 : 128;
+	if ((m_TEX0.PSM & 0xf) == PSMCT24)
+	{
+		m_alpha_min = 128;
+		m_alpha_max = 128;
+	}
+	else
+	{
+		m_alpha_min = 0;
+		m_alpha_max = m_32_bits_fmt ? 255 : 128;
+	}
 	g_gs_device->Recycle(t);
 	m_dirty.clear();
 }