Environment
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
StateIllinoisIntroduced
SB 3175: INC TX-OVERTIME WAGES
Neil Anderson
SB 3175 status: Introduced — Added as Co-Sponsor Sen. Darby A. Hills (updated Sep 10, 2026).
Source
LegiScan
Confidence
High
Analysis basis
LegiScan full bill text
01
What this bill does
Official summary alongside an AI-generated read on where it stands and why.
Overall Score
59OUT OF 100
Score:59/100 civic fit
Risk:Moderate Risk
Impact:Moderate Impact 60/100
Constitutionality95%
Bipartisan70%
Public opinion85%
Bill summary
What changes
Creates a new state income tax deduction for wages earned as overtime that exceed a worker's regular, expected monthly or weekly salary.
Who is affected
Eligible employees receiving overtime pay, the Illinois Department of Revenue, and employers managing payroll.
Requirements and enforcement
Taxpayers must calculate and identify overtime earnings in excess of their regular pay to claim the deduction.
Costs and funding
The bill will reduce state income tax revenue; administrative costs for implementation and audits by the Department of Revenue are implied.
When it takes effect
Effective for taxable years beginning on or after January 1, 2026.
Potential benefits
Provides tax relief for workers who put in extra hours, increasing their take-home pay and incentivizing extra labor.
Risks and tradeoffs
Risk of decreased state tax revenue, potential for administrative friction between employees and payroll systems, and health/safety concerns associated with increased work hours.
What is still unknown
The precise impact on the state budget and the extent of payroll compliance issues remain undetermined.
02
Impact analysis
✦ AI analysisModeled effects across six domains, estimated from bill text and comparable legislation.
Economy
Positive outlook
70%
Benefits
- Incentivizes additional hours for workers
- Increases disposable income for overtime-earning households
- Acts as a direct tax relief measure for workers
Risks
- Reduces state income tax revenue
- Potential administrative complexity in wage classification
- Increased tax filing complexity for taxpayers
Society
Positive outlook
75%
Benefits
- Provides financial support to working families
- Reduces tax burden on those working extra hours
- Supports economic mobility for wage earners
Risks
- May inadvertently pressure workers into excessive hours
- Inequitable benefit distribution based on job types
- Does not benefit those on fixed salaries without overtime
Technology Industry
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
Civic Accountability
Mixed / Neutral
50%
Benefits
- Clear statutory definition of the deduction
- Legislative transparency in tax reform
- Establishes a defined mechanism for tax relief
Risks
- Increased potential for tax error and audit
- Complexity in enforcement for payroll services
- Requires ongoing oversight by tax authorities
Public Health & Safety
Mixed / Neutral
40%
Benefits
- Higher disposable income improves access to needs
- Direct link between economic stability and health
- Reduces financial stress related to essential bills
Risks
- Encourages long work hours risking fatigue
- Potential increase in workplace injury rates
- Higher burnout risk due to overtime incentives
03
How trustworthy & consequential it is
Sourcing already shown above, this is what the analysis found worth flagging.
Source
LegiScan
Official bill text or data from LegiScan.
Confidence
High
Information is complete and verified.
Analysis basis
LegiScan full bill text
Source used for this bill's analysis.
Source note
Potential for employer-led wage restructuring to mitigate tax impacts
Analysis scope
Fiscal impact to the state treasury is not quantified
04
Where it stands
Official record- IntroducedCurrent
- CommitteeUpcoming
- Chamber votesUpcoming
- Final agreementUpcoming
- GovernorUpcoming
- EnactedUpcoming
05
How it affects your district
✦ Personalized
Set your location
Add your district to see how this bill may affect your community and who to contact.
Your Representatives
Your representatives appear here once you add your location.
06
Take action
Contact your representatives
Let them know how you feel about this bill.
Share your view
Join the discussion and see what others are saying.
Track this bill
Stay updated on progress and changes.