State News
All posts tagged state news.
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.