WeVote
Log In

Bill

Bill

HF 415

Individual income tax subtraction for provided overtime pay.

2025-2026 Regular Session Introduced by Mary Franson and 3 co-sponsors

Minnesota bill would let residents subtract overtime pay from state taxable income, reducing tax liability for overtime-working employees but decreasing state revenue.

Author added Gordon
#taxation-income
0
WeVote Research Nonpartisan
Bill Summary · HF 415

Legislative bill overview

HF 415 proposes to create a state income tax subtraction for overtime compensation earned by Minnesota residents. This would allow taxpayers to deduct a portion of their overtime pay from their taxable income, effectively reducing their state tax liability on earnings above regular working hours.

Why is this important

Overtime pay represents additional compensation for workers taking extra shifts or extended hours. A tax subtraction could provide modest financial relief to working-class and middle-class Minnesotans who regularly work overtime, though the fiscal impact depends on the subtraction's scope and amount.

Potential points of contention

  • Revenue impact: The bill would reduce state tax collections; the magnitude depends on how much overtime pay qualifies and how many workers would benefit, potentially affecting state budget priorities and services
  • Tax fairness questions: Critics may argue this creates preferential treatment for certain workers (those able to work overtime) while others earn equivalent income through different means, raising equity concerns
  • Definition and administration: Determining what qualifies as "overtime pay" and preventing misclassification of compensation could create compliance complexity for employers and auditing challenges for tax authorities
  • Economic targeting: Supporters argue it helps workers; opponents may question whether targeted income tax cuts versus broader tax policy or wage increases are the most effective approach

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

Sign in to ask a question.