Congress·In Committee·H.R. 5475

House Bill Would Eliminate Federal Income Tax on Overtime Pay for All Workers

No Tax on Overtime for All Workers Act

6 months ago·View on Congress.gov

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Stalled

No legislative action in over 90 days.

Legislative Progress

House

Senate

President

Law

Key Points

Creates a federal income tax deduction for certain overtime pay, which could lower some workers’ taxable income.
Covers regular overtime required by federal wage law (the extra pay above your normal hourly rate after overtime hours).
Also covers some “overtime-like” extra pay under pre-made worker-employer agreements, including certain transportation workers on special schedules.
Applies starting with tax years after December 31, 2024, meaning it could affect recent and future tax returns if it becomes law.
How much you benefit would depend on how much overtime you work and whether your extra pay fits the bill’s definitions.

TaxesLabor Employment

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(6)

Housing Assistance

Neutral

Child Tax Credit

Neutral

Renter

Neutral

Homeowner

Neutral

Gig Worker

Neutral

Small Business Owner

Neutral

Positive Impacts(1)

Union Member

Helps

Political Response

Milestones

2 milestones2 actions

Sep 18, 2025House

Referred to the House Committee on Ways and Means.

Sep 18, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

After the bill is enacted and before the first filing season it applies to

IRS updates tax forms/instructions for claiming the overtime deduction

Tax software and paper forms would add a place to report the deductible overtime amount, making it clearer how to claim the break.

Related News

3 articles

Forbes·8 months ago

No Tax On Overtime Explained

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.

Land Line Media·9 months ago

Truckers left out of No Tax on Overtime bill

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.

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Aero Crew News·6 months ago

ALPA Endorses No Tax on Overtime for All Workers Act

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.

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Related Bills

1 bill

H.R. 6900Related bill

American Affordability Act of 2025

Dec 18 — Referred to the Committee on Ways and Means, and in addition to the Committees on Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.