No Tax On Overtime Act of 2025

S 1046, the "No Tax On Overtime Act of 2025," would exclude overtime pay earned under the Fair Labor Standards Act (FLSA) from taxable gross income. This directly affects hourly workers who receive legally required overtime compensation (typically 1.5 times regular pay for hours over 40 per week). The bill amends the tax code to add a new provision stating that such overtime pay is not included when calculating federal income tax liability. The change would take effect for overtime pay received after the bill's enactment date.