No Tax on Overtime for All Workers Act

James C. Justice

Republican · WV · Senator

Source: Congress.gov · FEC

• Maria Cantwell (D-WA)· 2026-05-11

Read twice and referred to the Committee on Finance.

2026-04-15

Source: Congress.gov

This bill would let workers deduct certain overtime pay they receive from their taxable income, similar to how some other work-related expenses can reduce what people owe in taxes. The change would primarily benefit employees who regularly work extra hours and want to lower their overall tax burden. The proposal is currently being reviewed by the Senate Finance Committee.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 4310 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 4310 To amend the Internal Revenue Code of 1986 to allow a deduction for certain overtime compensation. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES April 15 (legislative day, April 14), 2026 Mr. Justice introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to allow a deduction for certain overtime compensation. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``No Tax on Overtime for All Workers Act''. SEC. 2. DEDUCTION FOR CERTAIN OVERTIME COMPENSATION. (a) In General.--Section 225(c)(1) of the Internal Revenue Code of 1986 is amended to read as follows: ``(1) In general.--For purposes of this section, the term `qualified overtime compensation' means-- ``(A) any overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act of 1938 that is in excess of the regular rate (as used in such section) at which such individual is employed, or ``(B) any compensation paid to an individual that is in excess of the regular rate at which such individual is employed if-- ``(i) such compensation is paid for work for a single employer pursuant to an agreement between the employee (or labor organization representing such employee) and employer entered into before the performance of the work, and ``(ii) either-- ``(I) such work is in excess of a standard number of hours of such work for a specified period of time, and such agreement specifies that such standard number of hours for a specified period of time is not less than 40 hours for a 7-day work period, or ``(II) if the employee (including any crewmember or flight crewmember, or rail operating craft employee) and employer referred to in clause (i) are both covered by the Railway Labor Act, such work is beyond scheduled or anticipated hours on duty or for hours on duty that exceed a maximum number of hours with respect to a specified period of time (as determined pursuant to such agreement).''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2024. <all>

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