This bill allows workers to keep more of their money by not taxing overtime pay. It helps ensure that those who work extra hours benefit fully from their additional earnings.
No Tax On Overtime Act of 2025This bill excludes from gross income for federal income tax purposes overtime compensation paid for hours worked in excess of 40 hours per week (as required by the Fair Labor Standards Act of 1938). Under current law, overtime compensation paid to a taxpayer is included in gross income for purposes of calculating federal income taxes.
