The recently enacted One Big Beautiful Bill Act introduces a major change to the federal tax code, delivering welcome news for both employees and employers for tax years 2025 through 2028, as qualified overtime pay will not be subject to Federal income tax.
This move is poised to increase take-home pay for many American workers and streamline compensation strategies for businesses.
No Tax on Overtime Pay
Taxes - Planning, Rules and Returns , Taxes - Individual , One Big Beautiful Bill , Overtime
Understanding the Changes to Tax on Overtime Pay
Taxes - Corporate & Business , Taxes - Planning, Rules and Returns , Taxes - Individual , One Big Beautiful Bill , OvertimeThe recently enacted One Big Beautiful Bill Act introduces a major change to the federal tax code, delivering welcome news for both employees and employers for tax years 2025 through 2028, as qualified overtime pay will not be subject to Federal income tax.
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