AN ACT EXEMPTING OVERTIME INCOME FROM THE PERSONAL INCOME TAX.

Plain English Breakdown

Checked against official source text during the last sync.

Law Making Overtime Pay Tax-Free

This law exempts overtime pay from state personal income taxes.

What This Bill Does

• Changes the tax rules to say that overtime pay does not count towards personal income taxes.

Who It Names or Affects

• Employees who work overtime and get paid for those extra hours.

Terms To Know

Overtime

Extra hours worked beyond the regular work schedule, often at a higher pay rate.

Personal Income Tax

A tax that individuals must pay based on their earnings and other income sources.

Limits and Unknowns

• The bill does not specify how much overtime income is exempt from taxes.
• It only affects state personal income tax, not federal or local taxes.

Official Summary Text

To exempt from the personal income tax the amount of any overtime income earned by an employee.

Current Bill Text

LCO No. 81 1 of 1

General Assembly Proposed Bill No. 207
February Session, 2026 LCO No. 81

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
SEN. RAHMAN, 4th Dist.

AN ACT EXEMPTING OVERTIME INCOME FROM THE PERSONAL
INCOME TAX.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That the general statutes be amended to exempt from the personal 1
income tax the amount of any overtime income earned by an employee. 2
Statement of Purpose:
To exempt from the personal income tax the amount of any overtime
income earned by an employee.