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Bill

SB 311

Eliminating state income tax on certain qualified overtime compensation.

2025-2026 Regular Session Introduced by Ethan Corson

Kansas bill exempts qualified overtime compensation from state income tax, reducing tax obligations for overtime workers while decreasing state revenue.

Died in Committee
#taxation
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WeVote Research Nonpartisan
Bill Summary · SB 311

Legislative bill overview

SB 311 proposes to exempt certain qualified overtime compensation from Kansas state income tax. The bill would reduce tax liability for workers earning overtime pay by excluding a portion or all of their overtime earnings from taxable income. This represents a targeted tax reduction aimed at a specific category of labor compensation.

Why is this important

Overtime workers currently pay state income tax on all earnings, including overtime hours worked beyond standard schedules. This tax exemption could increase take-home pay for eligible workers and potentially affect state revenue collection. The bill reflects policy choices about which types of income to tax and how to structure incentives around work hours.

Potential points of contention

  • Revenue impact: Removing overtime from the tax base reduces state income, which may require offsetting cuts elsewhere or tax increases on other groups
  • Fairness and horizontal equity: Workers with salaries earning the same total compensation would face different tax treatment than overtime workers, raising questions about consistency
  • Definition of "qualified" overtime: The bill's language on which overtime qualifies (industry-specific, income-level thresholds, etc.) will determine who benefits and by how much
  • Economic efficiency: Unclear whether tax incentives for overtime actually increase work hours or simply provide windfalls to those already working overtime

Compiled from official sources — confirm details with the bill’s official record.

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