BILL NUMBER: S3914
SPONSOR: MARTINS
 
TITLE OF BILL:
An act to amend the tax law, in relation to subtracting from federal
adjusted gross income any overtime compensation earned by an individual
 
PURPOSE:
Eliminates taxes on overtime pay
 
SUMMARY OF PROVISIONS:
Section I. Subsection (c) of section 612 of the tax law is amended by
adding a new paragraph 48.
Section 2. Sets the effective date
 
JUSTIFICATION:
This bill would eliminate state income taxes on overtime pay for all
workers in New York State. The purpose of this legislation would be to
provide financial relief for working families, especially for those in
industries where overtime is common practice, and to encourage work at a
time when many businesses are having a difficult time attracting and
retaining employees. As costs continue to rise, many employees rely on
overtime pay to support their families to meet their financial needs.
Taxing overtime pay reduces the value of these additional earnings.
 
LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
To be determined
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2026

Statutes affected:
S3914: 612 tax law, 612(c) tax law