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119-s-1046119th CongressWALLET

No Tax On Overtime Act of 2025

Sponsored By: Senator Hawley, Josh [R-MO]

Introduced

Summary

Excludes overtime pay from federally taxable income. The bill would amend the Internal Revenue Code to treat overtime compensation required by the Fair Labor Standards Act as excluded from gross income for federal income tax purposes, lowering taxable income for workers who earn overtime and applying to overtime amounts received after enactment.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Lower taxes on overtime pay

If enacted, you could exclude qualifying overtime pay from your federal taxable income. It would only cover overtime required by federal overtime law (the Fair Labor Standards Act, section 7). It would apply only to overtime you receive after the bill is enacted; earlier overtime would not qualify. This would not change Social Security or Medicare payroll taxes. Your tax savings would be roughly your qualifying overtime times your income tax rate.

Sponsors & CoSponsors

Sponsor

Hawley, Josh [R-MO]

MO • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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