No Tax on Overtime for All Workers Act
Key claim: The No Tax on Overtime for All Workers Act (HR5475) would eliminate federal income tax on overtime pay for all workers.
Abstract
(HR5475 · 119th Congress) Latest action (2025-09-18): Referred to the House Committee on Ways and Means.
Why this matters
Excluding overtime pay from federal income tax would reduce liability for hourly and non-exempt workers who regularly work beyond 40 hours, while providing no direct benefit to salaried or exempt employees. The proposal reflects an ongoing policy trend—alongside no-tax-on-tips proposals—of carving specific wage categories out of the federal income tax base, raising questions about revenue impact, employer classification incentives, and horizontal equity across worker types.