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Bill

HB 414

TAX/INCOME TAX: Exempts certain overtime compensation and income earned from tips from state income taxation (OR DECREASE GF RV See Note)

2025 Regular Session Introduced by Jason DeWitt

Louisiana bill exempts overtime pay and tip income from state income tax, reducing state revenue and primarily benefiting service and hourly workers.

Read by title, under the rules, referred to the Committee on Ways and Means.
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Bill Summary · HB 414

Legislative bill overview

HB 414 would exempt overtime compensation and tip income from Louisiana state income taxation. The bill was prefiled in early April 2025 and is currently under review by the Committee on Ways and Means. The fiscal note indicates this would decrease General Fund revenue.

Why is this important

This proposal directly affects worker take-home pay for service industry and hourly workers who earn tips or overtime. The revenue loss to the state could impact funding for public services, schools, and infrastructure unless offset by other revenue sources or spending cuts.

Potential points of contention

  • Revenue impact: Exempting overtime and tips reduces state tax revenue, requiring either tax increases elsewhere, spending reductions, or deficit spending to maintain current services
  • Equity concerns: Benefits primarily service industry and hourly workers while potentially shifting tax burden to other income sources or taxpayers
  • Implementation complexity: Requires the state to track and verify overtime hours and tip income, adding administrative burden to employers and tax enforcement

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

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