TAX CUT: Alabama tax on overtime pay now in effect

Starting Monday, hourly workers who perform work in excess of 40 hours per week, overtime, will take home a larger portion of their wages as a new policy goes into effect. The bipartisan idea was proposed by Alabama House Minority Leader Anthony Daniels. Rep. Daniels’ (D-Huntsville) bill to eliminate state income tax on overtime pay for hourly workers was enacted in the 2023 legislative session with unanimous bipartisan support with a 103-0 vote in the Alabama House and 30-0 in the Alabama Senate. The bill was signed into law by Governor Kay Ivey (R). Alabama is the first state with state inco