Bill > S03914

This bill proposes to amend New York state tax law by allowing individuals to subtract overtime compensation from their federal adjusted gross income when calculating state taxes. Specifically, the bill defines "overtime compensation" as wages earned for work performed beyond an individual's normal scheduled working hours, which can be deducted from taxable income to the extent that it is already included in federal gross income. This means that employees who work extra hours and receive additional pay for those hours will be able to reduce their state tax liability by excluding those overtime earnings from their taxable income. The bill is set to take effect for taxable years beginning on or after January 1, 2026, providing a potential financial benefit for workers who regularly earn overtime pay by effectively lowering their state tax burden.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S3914