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HB 1370

Income tax; exclude a portion of overtime compensation and cash tips

2025-2026 Regular Session Introduced by Shaw Blackmon and 1 co-sponsor

Georgia bill excludes overtime pay and cash tips from state income tax to reduce tax burden on service and hourly workers earning supplemental income.

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Bill Summary · HB 1370

Legislative bill overview

HB 1370 proposes to exclude a portion of overtime compensation and cash tips from Georgia state income tax calculations. The bill would reduce taxable income for workers who earn overtime pay or receive tips, effectively lowering their state income tax liability on these earnings.

Why is this important

This measure directly affects take-home pay for service workers, healthcare workers, and others who regularly earn tips or overtime—typically lower to middle-income workers. The policy could influence worker compensation decisions, business hiring practices, and state tax revenue collections.

Potential points of contention

  • Revenue impact: Excluding portions of income from taxation reduces state revenue, which must be offset through other tax increases, spending cuts, or deficit spending
  • Fairness questions: Workers whose income doesn't include tips or overtime (salaried employees, for example) would not receive the same tax benefit, potentially creating equity concerns
  • Definition clarity: The bill's "portion" language raises questions about what percentage is excluded and how cash tips are verified for tax purposes
  • Economic effects: Unclear whether the tax break meaningfully incentivizes worker productivity or simply transfers wealth from the state to individual workers

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

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