Starting January 1, 2024, full-time hourly workers in Alabama will be able to keep more of their earnings. This change is a result of the passage of House Bill 217 during the last legislative session. According to this law, full-time hourly workers are exempt from the 5% income tax on hours worked beyond 40 per work week. It is important to note that this provision is slated to conclude in June 2025 unless an extension is granted.
To learn more about HB217, visit: https://www.revenue.alabama.gov/individual-corporate/overtime-exemption/
