Bill > HB504

This bill amends the Mississippi state income tax law to exclude overtime compensation from gross income. Specifically, the bill adds a new provision to the existing tax code that exempts amounts received as overtime compensation required by the Fair Labor Standards Act (FLSA) from being counted as taxable income. The Fair Labor Standards Act is a federal law that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for workers in the United States. By excluding overtime pay from gross income, the bill aims to provide tax relief for workers who earn additional compensation for working more than standard hours. The bill will take effect on January 1, 2025, and does not impact any tax assessments or claims that existed before its implementation. This change means that employees who receive overtime pay will not have to pay state income tax on those additional earnings, potentially providing a modest financial benefit to workers who work extra hours.

Budget and Finance

https://billstatus.ls.state.ms.us/2025/pdf/history/HB/HB0504.xml