Bills › 91st General Assembly
Excluding overtime from the individual income tax, and including applicability provisions
Sponsored by Rep. Jeff Cooling (D)
Topics:TaxesIncome taxes
Where it is now
- Done: IntroducedFebruary 12, 2025
- Stopped: SubcommitteeDied when the General Assembly ended
- Next: House committeeFunnel: by February 20, 2026
- Next: Passes the House
- Next: Senate committeeFunnel: by March 20, 2026
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary People who earn overtime pay would not have to pay state income tax on those extra earnings. This change would apply to workers starting in 2026.1
Read the official explanation
This bill excludes overtime pay from the individual income tax. The bill excludes from the individual income tax the portion of overtime compensation that is authorized pursuant to 29 U.S.C. §207 to be earned at a rate of not less than one and one-half times but not exceeding twice the regular rate. The bill applies to tax years beginning on or after January 1, 2026.