ROANOKE, Va. – President Donald Trump signed a new spending bill on July 4 that includes tax breaks on overtime hours, but truck drivers across the nation will see no benefit from the new legislation.
The “No Tax on Overtime” provision, part of the so-called One Big Beautiful Bill Act, allows eligible workers to deduct overtime compensation that exceeds their regular pay rate. However, most truck drivers remain excluded because their industry isn’t protected under the Fair Labor Standards Act (FLSA) of 1938.
“Not taking any taxes out on overtime would be tremendous,” says Gary Brookshire, a truck driver who, like many others in his industry, won’t qualify for the deduction.
The trucking industry’s compensation structure creates multiple barriers to overtime benefits. Many drivers, especially those operating nationwide routes, receive payment by mile rather than hourly wages. Others work on a per-load basis, meaning their compensation remains fixed regardless of hours worked.
“There’s a lot of drivers out here who work a lot of hours and we’re not really being paid our worth,” explains Brian Hood, a truck driver who often works 14 to 16-hour days without overtime compensation.
The exclusion from these tax benefits could worsen the industry’s ongoing driver retention problems. Hood suggests the tax breaks might have helped address this issue: “It could help stabilize the industry and make people want to stay in the industry and you wouldn’t have as high of a turnover.”
For truckers, the missed opportunity represents more than just lost tax savings. Many drivers indicate the extra money could have made a significant difference in their work-life balance and family support.
“I could afford to stay home with my wife more instead of staying out on the road more,” truck driver Hubert Hood said, while Brookshire adds, “More money in your pockets means you pay more bills and do more for your family.”
The new tax provision, effective from 2025 through 2028, offers deductions up to $12,500 for individuals and $25,000 for joint filers, but only for workers in FLSA-protected occupations. The legislation phases out for taxpayers with modified adjusted gross income over $150,000 for individuals and $300,000 for joint filers.