No Tax On Overtime Act of 2025

This bill proposes to amend the Internal Revenue Code of 1986 by introducing a new exclusion from gross income. Its central aim is to exempt overtime compensation from federal income tax , thereby reducing the taxable income for individuals who work additional hours. This change specifically targets overtime pay as defined and required under section 7 of the Fair Labor Standards Act of 1938. By excluding these earnings, the legislation seeks to provide a direct financial benefit to employees receiving overtime wages. The amendments made by this act would apply to all overtime amounts received on or after the date the bill is officially enacted into law.