Bill · S. 1046· Senate(119-S-1046)
No Tax On Overtime Act of 2025
- Introduced
- 3/13/2025
- Last activity
- 3/13/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Josh Hawley
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill is known as the "No Tax On Overtime Act of 2025." It seeks to amend the Internal Revenue Code of 1986. The primary goal is to exclude overtime compensation from gross income for income tax purposes. This specifically applies to overtime required under section 7 of the Fair Labor Standards Act of 1938. The changes would apply to amounts received after the date the Act is enacted.
Yes· 3 of 6
Does this cut taxes for middle-income families?+7
By exempting overtime pay from gross income, middle-class workers earning overtime will see a reduction in their tax burden.
Would middle-income households be better off under this?+6
Middle-class workers will see direct financial benefits from the exclusion of overtime pay from gross income.
Would households on low incomes be better off under this?+5
Low-income workers who rely on overtime will benefit from increased take-home pay due to tax exemptions.
The opposite
Does this reduce what the federal government owes?-2
Reducing tax revenue through overtime exemptions may negatively impact the federal deficit.
Does this make the government pay for what it commits to?-2
The reduction in tax revenue could be viewed as a decrease in fiscal responsibility regarding the federal deficit.
Who it would affect, and how
Potential Positive Impacts for People
- Tax Relief on Extra Earnings: Under Section 2(a), overtime compensation required by the Fair Labor Standards Act of 1938 would no longer be included in gross income. This means workers would not have to pay income tax on the money they earn from overtime hours.
Potential Negative Impacts for People
- No Negative Impacts Identified: The provided text does not contain any information regarding potential negative consequences or burdens resulting from this bill.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Class Households+6Good For Low Income Households+5Good For Union Workers+3
- Economy And Finance
- Reduces Middle Class Taxes+7Improves Economic Growth+1Improves Fiscal Responsibility-2Reduces National Debt-2
- Social Issues And Justice
- Improves Poverty Reduction+2
- 3/13/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.