Rep. James Lomax files overtime tax cut

State Representative James Lomax, R-Huntsville, filed legislation Thursday that would exempt up to $1,000 in qualified overtime pay from Alabama income taxes.

House Bill 527 would create a state income tax deduction for qualified overtime pay. Under the proposal, taxpayers could deduct up to $1,000 in overtime compensation from their Alabama taxable income.

“Affordability is the number one issue in our country, and I want Alabama to be a state that prioritizes lightening the load for its working families,” Lomax said. “My legislation follows the lead President Trump set in the Big Beautiful Bill by providing up to $1,000 in income tax deductions for overtime. The people of Alabama deserve to keep more of their hard-earned money, and I am committed to making sure that is exactly what happens.”