House Bill Would Eliminate Federal Income Tax on Overtime Pay for All Workers
A house committee must act next: committee consideration.
No action since September 2025
How this policy affects specific groups of people
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
The policy creates a federal income tax deduction for 'qualified overtime compensation' under the FLSA, capped at $12,500 for individuals. It applies only to the extra pay above regular wages (the 'half' in time-and-a-half) and phases out for those earning over $150,000.
Truck drivers are currently excluded from the 'No Tax on Overtime' benefits because they are not covered by the Fair Labor Standards Act's overtime requirements. Advocacy groups are pushing for legislative fixes to ensure drivers can access the tax deduction.
The Air Line Pilots Association announced support for the bipartisan 'No Tax on Overtime for All Workers Act' (H.R. 5475). The bill expands the overtime tax deduction to include pilots and other workers covered by the Railway Labor Act who were initially excluded.
No votes recorded for this bill yet.
Document Type
Congressional Bill
Official Title
No Tax on Overtime for All Workers Act
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