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HR5475FEDERALin_committee

High Impact

No Tax on Overtime for All Workers Act (H.R. 5475)

Original title: No Tax on Overtime for All Workers Act

September 18, 2025

taxes labor overtime wages internal revenue code

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Where This Stands

Introduced

Committee

Floor Vote

Passed

Signed

Currently in_committee. The next step in the legislative lifecycle is Floor Vote.

Last action

Referred to the House Committee on Ways and Means.Sep 18, 2025

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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The Frame

What this does

This bill would change federal tax law to allow employees to deduct overtime pay from their taxable income, potentially reducing the total income tax owed by workers who regularly work overtime hours.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Employees working overtime

These individuals would be eligible to claim a tax deduction for their overtime compensation.

Employers

Employers may need to adjust payroll reporting to distinguish between regular and qualified overtime compensation for tax purposes.

Railway workers

The bill includes specific provisions for workers covered by the Railway Labor Act to qualify for the deduction based on their specific duty agreements.

What changed

Current stage: in_committee.

What's next

Floor Vote.

Summary

This bill proposes a federal tax for overtime pay. If passed, it would allow workers to exclude certain overtime compensation from their taxable income starting with the 2025 tax year.

Key Facts

The bill creates a tax deduction for 'qualified overtime compensation'.
Qualified overtime includes pay required by the Fair Labor Standards Act of 1938 that exceeds the regular rate of pay.
Qualified overtime also includes non-FLSA overtime pay agreed upon by an employer and employee (or union) for work exceeding 40 hours in a 7-day period.
For employees covered by the Railway Labor Act, qualified overtime includes pay for hours beyond scheduled or anticipated duty hours.
The tax deduction would apply to taxable years beginning after December 31, 2024.
The bill was introduced in the House of Representatives on September 18, 2025.

Frequently Asked Questions

Would all overtime pay be tax-free under this bill?

The bill allows for a tax for ',' which is defined as pay exceeding the regular rate for hours worked beyond 40 in a week, or specific overtime arrangements for railway employees.

When would this change take effect?

If enacted, the would apply to taxable years beginning after December 31, 2024.

Why It Matters

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Expansion of Overtime Tax Treatment

The bill explicitly expands the definition of overtime eligible for tax relief to include non-FLSA agreements and specific railway labor arrangements, moving beyond standard hourly overtime.

Fair Labor Standards Act of 1938 Railway Labor Act

Connected Entities

personTom Suozzi“Co-sponsor of the bill.”Map →

personNick LaLota“Co-sponsor of the bill.”Map →

personBrian Fitzpatrick“Co-sponsor of the bill.”Map →

organizationCommittee on Ways and Means“The House committee currently reviewing the bill.”Map →

personEmilia Sykes“Co-sponsor of the bill.”Map →

personNicole Malliotakis“Primary sponsor of the bill in the House of Representatives.”Map →

personSteven Horsford“Co-sponsor of the bill.”Map →

Analysis Score

0–100

Significance85
How much this matters to a regular citizen
Controversy40
Intensity of disagreement among stakeholders
Entertainment10
Compellingness for a non-policy-wonk reader
Buzz60
Current news / social attention level

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