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No Tax on Overtime for All Workers Act

This bill aims to exempt overtime compensation from income tax. This means that employees working overtime may receive higher net pay for this additional work, potentially increasing their disposable income. These changes will apply to taxable years beginning after December 31, 2024.
Key points
More money in your pocket: Overtime pay will not be taxed, meaning employees will receive more money for each hour worked beyond standard hours.
Applies to legally required overtime and overtime from collective or individual agreements, if specific conditions are met.
Changes will take effect from 2025, impacting tax filings for that year and beyond.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_4740
Sponsor: Rep. Sykes, Emilia Strong [D-OH-13]
Process start date: 2025-07-23
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

No Tax on Overtime for All Workers Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_4740.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-07-23.

What are the main provisions?

Key points include:

  • More money in your pocket: Overtime pay will not be taxed, meaning employees will receive more money for each hour worked beyond standard hours.
  • Applies to legally required overtime and overtime from collective or individual agreements, if specific conditions are met.
  • Changes will take effect from 2025, impacting tax filings for that year and beyond.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Sykes, Emilia Strong [D-OH-13].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Labor