No Tax on Overtime for All Workers Act
A bill to amend the Internal Revenue Code of 1986 to allow a deduction for certain overtime compensation.
SB4310, known as the "No Tax on Overtime for All Workers Act," proposes to change the tax treatment of overtime pay. Specifically, it aims to allow a deduction for certain overtime compensation under the Internal Revenue Code of 1986. This means that workers who earn overtime pay could potentially see a reduction in their federal income taxes for those earnings.
This bill would primarily affect employees who work overtime, including both hourly and salaried workers who exceed regular working hours. If the bill is passed, these workers could benefit from lower tax rates on their overtime earnings, potentially increasing their take-home pay.
As of April 15, 2026, the bill was introduced and referred to the Senate Committee on Finance for further consideration. There have been no further actions taken since its referral, and it is currently under review.
