Tax cut on overtime ends today; it cost more than $400 million

Alabama’s tax exemption on hourly workers’ overtime pay ends today and will have cost the state — and helped some workers save — more than $400 million during its 18-month existence.

According to an April report from the Alabama Department of Revenue, the latest information available, the income tax exemption that went into effect in January 2024 had an estimated cumulative value of $386.7 million.

In the month of April, 361,259 people were paid $287.1 million in overtime wages, according to the ADOR report…

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