Bills · HR 5475
IN COMMITTEE· 119TH CONGRESS
House BillHR 5475Taxation
No Tax on Overtime for All Workers Act
INTRO SEP 18· LAST ACTION SEP 18
READING
2MIN
COSPONSORS
57BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it could put more money directly into the pockets of millions of American workers who put in extra hours. By reducing the federal income tax burden on overtime pay, it effectively increases the net wage for every hour worked beyond the regular rate, without increasing the employer's labor cost. This could serve as an incentive for employees to work more overtime shifts, knowing that a larger share of those earnings will stay with them.
If this bill becomes law, workers who rely on overtime to supplement their income could experience a noticeable financial benefit, helping them with daily expenses or savings. If it doesn't pass, overtime earnings will continue to be taxed at the full federal income tax rate, meaning workers would not see this potential increase in their net take-home pay from extra hours.
KEY PROVISIONS
4AI-extractedPROVISION 01
Allows a tax deduction for 'qualified overtime compensation' for taxable years beginning after December 31, 2024.
This provision is the core of the bill, directly reducing the taxable income for workers who earn overtime.
PROVISION 02
Defines 'qualified overtime compensation' to include overtime required under the Fair Labor Standards Act of 1938.
This ensures that a large segment of hourly workers receiving mandated time-and-a-half pay would be eligible for the deduction.
PROVISION 03
Expands the definition of 'qualified overtime compensation' to include premium pay from a single employer for work exceeding standard hours (at least 40 hours in 7 days) based on a pre-work agreement.
This extends the tax benefit beyond strict FLSA-mandated overtime to other forms of agreed-upon premium pay for working extra hours.
PROVISION 04
Includes specific provisions for employees covered by the Railway Labor Act, allowing a deduction for compensation beyond scheduled or maximum hours.
This ensures that workers in specific industries with unique labor laws can also benefit from the overtime deduction.
SPONSORSHIP
1 + 57
R· New York
YRS IN OFFICE
5
BILLS LED
55
COSPONSOR BREAKDOWNBIPARTISAN · 98%
DEM 29 REP 28 IND 0
ACTION TIMELINE
2 EVENTSSEP 18
Introduced in House
SEP 18
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 5475
Congress119th
StatusIn Committee
IntroducedSep 18, 2025
Last actionSep 18, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED SEP 18, 2025
House BillHR 5475Taxation
No Tax on Overtime for All Workers Act
INTRODUCED SEP 18, 2025· LAST ACTION SEP 18, 2025
PASSAGE CHANCES
—%
READING
2 min
COSPONSORS
57
COMPLEXITY
Moderate
