Iowa HF360 excludes overtime pay from individual income tax for tax years starting January 1, 2026.

Iowa HF360 amends the individual income tax to exclude overtime pay from taxable income. This exclusion applies to overtime compensation earned at a rate of at least one and one-half times but not exceeding twice the regular rate. The bill's provisions take effect for tax years beginning on or after January 1, 2026.

Iowa HF360 excludes overtime pay from individual income tax for tax years starting January 1, 2026.

Iowa HF360 amends the individual income tax to exclude overtime pay from taxable income. This exclusion applies to overtime compensation earned at a rate of at least one and one-half times but not exceeding twice the regular rate. The bill's provisions take effect for tax years beginning on or after January 1, 2026.