Senators Justice, Cantwell Introduce the No Tax on Overtime for All Workers Act

WASHINGTON, D.C. - On Tax Day 2026, Senators Jim Justice and Maria Cantwell (D-WA) introduced the bipartisan No Tax on Overtime for All Workers Act, which would expand the no-tax-on-overtime provision enacted in the Working Families Tax Cuts Act (H.R.1) to allow America's hardest workers to take advantage of this important tax credit.

"It's time to expand no-tax-on-overtime to all workers, including some of the hardest-working folks I know. Our firefighters and first responders, our pilots and truck drivers, our tradesmen and women-they all deserve to deduct their overtime wages and keep more of their hard-earned money. I'm proud to lead this meaningful legislation with Senator Cantwell to take care of the people who absolutely take care of us and our communities every day. These people really keep America going, we owe it to them," said Senator Jim Justice.

"This bill would provide tax relief to those workers, including critical segments of our aviation, rail, and maritime, workforce, who were left out because of the way the 'No Tax on Overtime' provision was drafted last year. By updating the restrictive definition of 'overtime,' our bill will ensure that millions of hourly workers who keep our economy moving can benefit from the overtime tax deduction," said Senator Maria Cantwell.

BACKGROUND:

• No-Tax-on-Overtime is an incredibly popular tax provision enacted by Working Families Tax CutsAct (H.R.1), allowing single filers to deduct up to $12,500 in overtime wages ($25,000 for married filing jointly).
• The No Tax on Overtime for All Workers Act would expand the definition of qualified overtime compensation to allow these hardworking men and women to take advantage of this important tax credit and bring home more of their hard-earned income to their families.
  • This bill would mean that firefighters in Wheeling, Moundsville, Huntington, Morgantown, South Charleston, Elkins, Dunbar, Beckley, Princeton, and Bluefield would now be able to take advantage of the tax deduction much sooner due to the current FLSA overtime threshold of 53 hours per week for firefighters.
• U.S. Representatives Emilia Sykes (D-OH), Nicole Malliotakis (R-NY), Steven Horsford (D-NV), Nick LaLota (R-NY), Tom Suozzi (D-NY), Brian Fitzpatrick (R-PA) introduced the companion legislation in the House of Representatives.