Business, state leaders celebrate end of overtime taxes in Alabama

A first-in-the-nation tax policy will go into effect on January 1, 2024 that eliminates the state’s 5% portion of taxes collected on overtime work. All full-time, hourly workers working more than 40 hours per week are eligible. Alabamians working the hardest will keep more of their paycheck, State Rep. Anthony Daniels (D-Huntsville) told lawmakers when he proposed the idea earlier this year. In a legislative session with tax relief on the minds of lawmakers, Daniels’ cut made the cut. “From a productivity standpoint, it gives the workers an opportunity to make more money without the employer h