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Imagine clocking out after a 55-hour work week. Your overtime pay remains untaxed by the state. This is a growing reality in a roster of states as of March 22, 2025. So, which states do not tax overtime? Alabama is leading the charge with its bold overtime tax exemption, cutting overtime pay taxation since January 1, 2024. Others are flirting with state-by-state no tax on overtime plans. These states with No Tax on Overtime are rewriting the rules of the game. For a growing number of Americans, it’s a golden opportunity to boost paychecks and save m
ore. Why tax exemption