Does GeorgiaTax Tips & Overtime After the OBBBA?
Georgia partially conforms to the federal deductionfor the federal OBBBA tip and overtime deductions. Here's what that means for your paycheck.
Compiled by Sharon Ben-Moshe · Conformity data verified August 1, 2026
Quick answer
Georgia has a state income tax (about 4.99% used for estimates) and currently partially conforms to the federal deduction. That means you may still owe state income tax on your tips and overtime even though your federal tax is reduced.
Tips deduction
Partial
Overtime deduction
Partial
Details for Georgia
Georgia decoupled from the federal deductions but enacted its own smaller break: up to $1,750/year each of tips and overtime pay is exempt from Georgia income tax for 2026-2028 (HB 463).
Last verified August 1, 2026.
How OBBBA tips & overtime work in Georgia
The OBBBA is a federal deduction: eligible workers can deduct up to $25,000 of tips and $12,500 of overtime premium ($25,000 if married filing jointly) from federal taxable income through 2028. Whether Georgia follows suit depends on state conformity. FICA (Social Security and Medicare) applies everywhere. Learn more about the tip deduction and the overtime deduction.
How this is sourced: Georgia's conformity status is tracked against state legislation and primary IRS guidance, and re-verified as the law changes. See our methodology and sources.