Midrange earners stand to see meaningful savings, too. A warehouse supervisor earning $60,000 with $10,000 in overtime could shave a couple thousand dollars off their federal tax bill. A hotel bartender making $45,000 plus $5,000 in tips could get back all the federal taxes withheld from their tips.

Several provisions of Trump's bill are poised to be retroactive to 2025 or take effect in 2026, and they may shift how Americans approach tax planning.

The One Big Beautiful Bill (“OBBB”), signed by President Trump on July 4, 2025, allows workers (subject to dollar and income limitations) to

More states may weigh in on the “no tax on overtime” debate. State legislatures will meet throughout the year, and overtime income could be on the slate of bills proposed. More than just your federal tax bill could be on the line, so stay tuned.

Millions of Americans can now keep more of their overtime earnings courtesy of language included in President Donald Trump’s “Big Beautiful Bill.”

Questions remain about how elements of the massive tax-and-spending bill signed by the President last week will play out. But here are some

Historically, Colorado typically aligns with federal tax law, so when the federal government creates a tax exemption, it usually carries over to state taxes as well. But the new law tells Colorado taxpayers that they will still need to add back in any overtime pay that’s been excluded under federal rules.

The "Big Beautiful Bill" did not actually eliminate taxes on tips, overtime, or Social Security, but many people will be able to claim new income tax deductions that will reduce federal taxes on such income.

The law covers people who work overtime under the Fair Labor Standards Act, which requires time-and-a-half pay for hours worked over 40 in a week. Many workers — including supervisory and professional workers, the self-employed and independent contractors — do not qualify for overtime and thus would not benefit from the provision.

Emergency service workers in the UK, including those in police, ambulance, and fire crews, could see a significant financial boost if calls to remove tax and National Insurance deductions on overtime are successful.