The No Tax on Overtime provision is boosting take-home pay by $1,400 for 23 million workers

Twenty-three million workers are seeing their take-home pay increase by $1,400 this year, thanks to the No Tax on Overtime provision in the Working Families Tax Cut. The policy, signed into law on July 4 of last year, excludes overtime income from federal income tax, directly benefiting hourly workers who rely on extra shifts to support their families. So far, more than 20% of individual tax returns filed by April 8 have claimed the deduction. The change was designed to reward additional work effort, not penalize it. For millions, that extra income means covering essential expenses, staying in jobs, or investing in their households. This single provision has reached more workers than any other in the package. The law was authored by House Ways and Means Chairman Jason Smith and signed by President Trump as part of a broader tax package aimed at working families.