Could Your State End Tax on Overtime This Year in 2025?

Key states are considering ending taxes on overtime — find out if yours makes the cut.
You might have heard about eliminating tax on overtime at the federal level. Overtime workers are entitled to 1.5 times their regular rate for working more than 40 hours per week.
More states may weigh in on the “no tax on overtime” debate. State legislatures will meet throughout the year, and overtime income could be on the slate of bills proposed. More than just your federal tax bill could be on the line — so stay tuned.