Introduced in Senate
No Tax On Overtime Act of 2025
SEC. 1. SHORT TITLETrack this section →
This Act may be cited as the No Tax On Overtime Act of 2025.
SEC. 2. EXCLUSION OF OVERTIME COMPENSATION FROM GROSS INCOMETrack this section →
(a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section: 139J. Overtime compensation Gross income shall not include overtime compensation required under section 7 of the Fair Labor Standards Act of 1938.. (b) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new item: Sec. 139J. Overtime compensation.. (c) Effective date The amendments made by this section shall apply to amounts received after the date of the enactment of this Act.