IllinoisIllinois workers could deduct qualifying overtime from state income
Illinois individual taxpayers would be allowed to subtract qualifying overtime wages above their normal salary when calculating state income, beginning with 2026 taxable years if enacted.
What it does
Individual taxpayers could subtract qualifying overtime wages from Illinois base income, but only the amount above their regular monthly or weekly salary would count.
Argument forWorkers who receive qualifying overtime could have less Illinois income subject to tax, which might reduce their state tax bills.
Argument againstBecause qualifying overtime would be subtracted from taxable income, the provision could reduce money collected through Illinois income taxes.
More detail
Individual taxpayers would subtract qualifying overtime wages when calculating Illinois base income. The provision covers overtime wages paid to individual taxpayers during a taxable year. The deduction would cover overtime wages paid at regular or overtime rates. Only the amount above the taxpayer's regular and normal monthly or weekly salary would count. The deduction would apply to taxable years beginning on or after January 1, 2026, if the measure becomes law.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Added as Co-Sponsor Sen. Jil TracyLatest
- Sep 29Added as Co-Sponsor Sen. Seth Lewis
- Sep 28Added as Co-Sponsor Sen. Craig Wilcox
- Sep 28Added as Co-Sponsor Sen. Donald P. DeWitte
- Sep 28Added as Co-Sponsor Sen. Chris Balkema
- Sep 10Added as Co-Sponsor Sen. Darby A. Hills
- Jul 9Added as Co-Sponsor Sen. Dave Syverson
- Jul 6Added as Co-Sponsor Sen. Sue Rezin
- Feb 2Referred to Assignments
- Feb 2First ReadingMinor
- Feb 2Filed with Secretary by Sen. Neil AndersonIntroduced
Economy & JobsTaxes & BudgetGovernment & Ethics