On Tax Day 2026, Sen. Jim Justice, R-W.Va.; and Sen. Maria Cantwell, D-Wash., introduced bipartisan legislation to broaden a recently enacted tax break on overtime pay, aiming to extend relief to millions of workers who were previously excluded.
The proposed No Tax on Overtime for All Workers Act would revise the definition of "qualified overtime compensation" under last year's Working Families Tax Cuts Act (H.R.1).
That law allows single filers to deduct up to $12,500 in overtime wages, or $25,000 for married couples, but its narrow drafting left out several categories of workers.
Justice said the bill would ensure that "firefighters and first responders, our pilots and truck drivers, our tradesmen and women" can benefit from the deduction.
"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 Justice.
Cantwell added that the measure would correct gaps affecting key transportation and infrastructure workers, including those in aviation, rail, and maritime industries.
"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," she said.
Under current labor rules, some workers, such as firefighters, who often qualify for overtime only after longer weekly thresholds, have struggled to access the tax break.
The new legislation would expand eligibility, so those workers can claim the deduction sooner.
Companion legislation has been introduced in the House with bipartisan support.
The measure builds on a broader push, particularly associated with the Trump administration's tax agenda, to reduce the tax burden on working and middle-income Americans through targeted relief tied to wages rather than across-the-board rate cuts.
A key focus of that effort has been industries like hospitality, where income is often supplemented by tips.
Policies such as proposals to eliminate taxes on tipped income and the enacted overtime deduction reflect a strategy of delivering tax relief to workers whose earnings can fluctuate and who are less likely to benefit from traditional tax preferences.
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.
© 2026 Newsmax. All rights reserved.