Hello, Alabama brothers and sisters! We have great news for you! The Alabama state government has passed a law so that hourly wage workers will get a break from income taxes if they work overtime! The legislation exempts overtime pay from being subject to the state’s 5% income tax for any time worked over 40 hours, starting in 2024 and continuing for 18 months until June 2025. The law was unanimously supported by Democrats and Republicans in Alabama’s House and Senate and signed into law by Governor Kay Ivey.
