State News
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Does Maryland Tax Your Tips and Overtime in 2026?
Maryland pairs a state income tax with county piggyback taxes. Understand how Maryland tax conformity impacts your federal OBBBA tip and overtime deductions.
Does Wisconsin Tax Your Tips and Overtime in 2026?
Wisconsin uses federal adjusted gross income as its tax baseline. Learn how Wisconsin conformity decisions affect your federal OBBBA deductions on Form 1.
Does Minnesota Tax Your Tips and Overtime in 2026?
Minnesota levies a graduated state income tax reaching 9.85 percent. Understand how state tax conformity rules affect your OBBBA tip and overtime deductions.
Does Washington State Tax Your Tips and Overtime in 2026?
Washington State does not levy a personal income tax, meaning hourly and tipped employees preserve the complete benefit of federal OBBBA deductions on their pay.
Does Nevada Tax Your Tips and Overtime in 2026?
Nevada has no personal income tax, allowing hospitality, casino, and overtime workers across Las Vegas and Reno to retain 100 percent of their federal OBBBA tax savings.
Does Florida Tax Your Tips and Overtime in 2026?
Florida has no personal income tax, so workers in the state keep 100 percent of their federal OBBBA tax savings without any state-level tax reduction or clawback.
Does North Carolina Tax Your Tips and Overtime in 2026?
North Carolina law specifically decouples from the federal OBBBA tips and overtime deductions, requiring workers to add back these amounts on their state returns.
Does Michigan Tax Your Tips and Overtime in 2026?
Michigan conformed to the federal OBBBA tips and overtime deductions beginning in tax year 2026, delivering both state and federal tax relief to workers.
Does Massachusetts Tax Your Tips and Overtime in 2026?
Massachusetts Department of Revenue guidance confirms that the state does not conform to federal OBBBA tips or overtime deductions, requiring a state addback.
Does Arizona Tax Your Tips and Overtime in 2026?
Arizona fully conformed to the federal OBBBA tips and overtime deductions under House Bill 4168, providing double tax relief to Arizona workers.
Does Ohio Tax Your Tips and Overtime in 2026?
Ohio's income tax starts from federal AGI, but the OBBBA tips and overtime deductions never touch AGI — so both stay fully taxable in Ohio on top of the state's new 2.75% flat rate. Two bills would fix that; neither has passed.
Does Virginia Tax Your Tips and Overtime in 2026?
Virginia just replaced decades of automatic IRC conformity with a fixed date — but Tax Bulletin 26-1 makes clear that change doesn't reach the OBBBA's tips or overtime deductions. Both stay fully taxable in Virginia.
Does New Jersey Tax Your Tips and Overtime in 2026?
New Jersey’s Gross Income Tax is calculated independently of federal AGI, so the OBBBA’s tips and overtime deductions don’t flow through automatically. Both remain fully taxable on your NJ return in 2026.
Does Georgia Tax Your Tips and Overtime in 2026? The State’s Own $1,750 Tax Break
Georgia didn’t adopt the federal OBBBA tips and overtime deductions — instead HB 463 created its own, smaller break: up to $1,750 a year each of tips and overtime pay exempt from Georgia income tax through 2028.
Does Pennsylvania Tax Your Tips and Overtime in 2026?
Pennsylvania hasn't adopted the OBBBA's tips or overtime deductions, so both stay taxable at the state's flat 3.07% rate — plus a local Earned Income Tax of 1% to 3.75% in most municipalities.
Does Colorado Tax Your Tips and Overtime in 2026?
Colorado conforms to the OBBBA's tips deduction automatically but voted to decouple from the overtime deduction — so tips stay tax-free at the state level while overtime gets taxed at 4.4%.
Does New York Tax Your Tips and Overtime in 2026?
Your federal tax on tips and overtime dropped under the OBBBA — but New York has not conformed, and NYC residents face an extra local tax on top. Here's what that means for your paycheck.
Texas Has No State Income Tax — How Much Do You Still Save from OBBBA?
Texas has no state income tax, so there's nothing for it to "conform" to. Tip and overtime workers there keep the full federal OBBBA deduction with zero state-level offset.
Does Illinois Tax Tips & Overtime? OBBBA Conformity Guide
Illinois hasn't adopted the OBBBA's tips or overtime tax breaks, so both stay fully taxable on your state return — but because Illinois has a flat 4.95% rate, the extra tax hits every income level the same way.
Does California Tax Your Tips and Overtime in 2026?
Your federal tax on tips and overtime dropped under the OBBBA — but California has not conformed. The state still taxes both as ordinary income in 2026. Here is what that means for your paycheck.
Will Your State Still Tax Your Tips and Overtime in 2026?
'No tax on tips and overtime' is federal only. Whether your state follows depends on conformity — and many states still tax both. Find your state's status.