Senators Marshall, Tuberville, and Colleagues Introduce Legislation to Cut Taxes on Overtime Wages

Washington – U.S. Senators Roger Marshall, M.D. (R-Kansas) and Tommy Tuberville (R-Alabama) today introduced the Overtime Wages Tax Relief Act, which would fulfill a key promise made by President Donald Trump to give tax relief to American workers. The legislation would create an income tax deduction for overtime wage earners, targeted to help lower and middle-income Americans. 

This legislation is cosponsored by U.S. Senators Pete Ricketts (R-Nebraska) and Jim Justice (R-West Virginia).

“President Trump promised relief for millions of hardworking Americans, and we’re proud to help deliver on that with the Overtime Wages Tax Relief Act,” said Senator Marshall. “Our legislation ensures Kansans keep more of their hard-earned wages and codifies a key pillar of President Trump’s pro-worker agenda as we work to pass our ‘One Big Beautiful Bill.’ It’s time to put American workers first again, and I’m proud to work with Senators Tuberville, Ricketts, and Justice to ensure we do just that.”

“President Trump campaigned and won on a promise to cut taxes for millions of Americans working overtime—and we are delivering on that promise,” said Senator Tuberville. “Thousands of Alabamians put in way more than 40 hours a week in order to save for retirement, put their kids through college, and keep the trains running. They should not be punished with higher taxes for working longer hours. Alabama was the first state to pass overtime tax exemptions, and I am hopeful that the federal government will follow suit. I’m proud to join Senators Marshall, Ricketts, and Justice in helping deliver on this critical piece of President Trump’s agenda, which will put American workers first.”

“On the campaign trail, President Trump promised tax relief to the American people. The Overtime Wages Tax Relief Act provides relief to law enforcement. It helps our heroic nurses. And it cuts taxes for other hourly workers in Nebraska,” said Senator Ricketts.

“This bill is about standing up for working Americans — the folks who stay late, pick up the extra shift, and keep this country running,” said Senator Justice. “I’m a business guy, and so is President Trump: We know that people respond when hard work is rewarded. This is a common-sense bill that will help more folks achieve the American Dream.”

The legislation is supported by the International Brotherhood of Teamsters.

“Thanks to the leadership of Sen. Marshall and a commitment by President Trump to put American workers first, the Teamsters Union proudly supports the Overtime Wages Tax Relief Act,” said Teamsters General President Sean M. O’Brien. “More working people need more money in their pockets — that must be a shared priority across our nation. This bill will help make it happen, especially when more workers are electing for more overtime to ensure they can make ends meet. Workers, union and nonunion alike, should not be taxed for their initiative and extra labor.”

Click HERE to read the full bill text.

This bill:

• Introduces a tax deduction for overtime wages – up to $10,000 for individuals and $20,000 for married couples.
• Includes phase-out eligibility based on income:
  • The deduction begins to phase out when income reaches $100,000 for individuals or $200,000 for married couples.
  • The deduction is reduced by $50 for every $1,000 in income above the threshold, similar to the Child Tax Credit.
• Defines overtime to include a wide range of workers such as law enforcement officers, nurses, trade workers, factory employees, and other eligible professions.
• Requires employers to report overtime earnings to ensure transparency and accuracy in claiming the deduction.