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No Tax on Overtime in 2025? Here’s What You Really Need to Know
Rachel Ratliff Rachel Ratliff

No Tax on Overtime in 2025? Here’s What You Really Need to Know

You may have seen the headlines (or TikToks): “Overtime pay isn’t taxed anymore!” While the new 2025 tax law does include a deduction for overtime, it’s not as cut-and-dried as social media is making it sound.

I’m breaking it down for you below — what’s true, what’s not, and what we’re still waiting on from the IRS.

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