Georgia lawmakers push to eliminate state income tax on overtime pay

ATLANTA - A bipartisan group of Georgia lawmakers is racing against the clock to pass a bill that would eliminate state income taxes on overtime pay for thousands of workers.

The last-minute push comes with just days left in the legislative session.

What they're saying:

The proposal would exempt up to $10,000 in overtime wages from Georgia state income tax. Supporters say the measure is aimed at providing relief to working-class residents feeling the pressure of inflation and rising costs. "This is about delivering tax relief to the Georgians who keep Georgia running," said Democratic State Rep. Inga Willis, one of the bill’s primary sponsors. "A lot of people are working extra hours to keep up with the cost of living. We know that inflation has had an impact on everyone."

The concept has drawn wide-ranging support — from progressive Democrats to former President Donald Trump, who recently touted a similar idea during a campaign stop in Georgia. "We will have no tax on tips, no tax on overtime and no tax on Social Security benefits for us," Trump said during the event.

While Trump’s remarks referred to federal taxes, this state-level bill would only apply to Georgia’s income tax on overtime earnings.

Willis emphasized the measure’s focus on everyday workers in essential industries. "It applies to full-time hourly workers across a wide range of essential industries. And we saw how important our essential workers are to our community and society. We saw that during the pandemic," she said.

Republican State Rep. Tyler Paul Smith also voiced strong support, calling the legislation a "common-sense step to ease the stress on hardworking Georgians — including nurses, truck drivers, first responders, utility workers and grocery store clerks."

What's next:

With the General Assembly’s final day — known as Sine Die — set for Friday, lawmakers have little time left to send the bill to the governor’s desk. If they fail to do so, the process would need to restart in the next legislative session.

"Overtime is not a luxury," Willis said. "I would look at bipartisan tax relief for working-class Georgians as an indication that there are some reps that have some good sense and are listening to the people."

Even if the bill passes this week, it would not apply to taxes due this month.