No Tax on Tips & Overtime by State 2026
The federal OBBBA "no tax on tips" and "no tax on overtime" deductions do not automatically apply to your state return — as of September 2026, 33 of the 42 income-taxing states (including DC) still tax at least some tips or overtime income that's fully deductible on your federal return. 8 states conform to both deductions with no cap, and the 2026 status of 1 unclear jurisdiction(s) is not yet final — see the full table below and confirm your state before filing.
Want your federal savings first? Run your numbers through the tips or overtime deduction calculators.
Four outcomes, at a glance
Taxes it
33 states (incl. DC) tax at least some tips or overtime income that's federal-deductible — you must add it back on the state return.
Conforms
8 states fully conform to both deductions for 2026 — either because their tax base starts from federal taxable income or because they passed their own deduction.
Unclear
1 jurisdiction(s) with a 2026 status that is not yet final because the governing law is still pending — verify directly with that tax department.
No income tax
9 states have no broad-based income tax, so the conformity question doesn't arise — your tips and overtime were never state-taxed.
All 50 states + DC
"Tips" and "overtime" are shown separately because a state can conform to one deduction and not the other — Colorado and New York are the clearest examples. Hover or read the note column for the mechanism (rolling vs. static IRC conformity, effective tax year, caps, or pending legislation) and click through to the source.
| State | Tips (§224) | Overtime (§225) | Notes & source |
|---|---|---|---|
| Alabama | Taxes it | Partial | Tips: the Alabama Department of Revenue's OBBBA executive summary lists the federal tips deduction (IRC §224) as "Tied to Federal: No", so tips stay Alabama-taxable. Overtime: the federal overtime deduction (IRC §225) is also not tied to federal, but Act 2026-604 lets taxpayers deduct the overtime premium on the Alabama return for 2026 through 2028, capped at $1,000 per taxpayer per year — far below the federal cap. [Alabama Dept. of Revenue — Overtime Premium Deduction (Act 2026-604); OBBBA Executive Summary (tips)] |
| Alaska | No income tax | No income tax | No broad-based state income tax on wages — the federal tips/overtime deduction question doesn't arise because there's no state income tax base to deduct from. [Alaska Dept. of Revenue — Tax Division] |
| Arizona | Conforms | Conforms | Arizona allows both as subtractions from Arizona gross income. For 2025 the Department of Revenue built them into the forms under Governor Hobbs's Executive Order 2025-15; HB 4168 (Laws 2026, Chapter 140, approved June 13, 2026) then wrote the tips and overtime subtractions into statute for taxable years beginning after December 31, 2024. They are claimed on Form 140, not Form 140A or 140EZ. [Arizona Legislature — Laws 2026, Chapter 140 (HB 4168)] |
| Arkansas | Taxes it | Taxes it | Arkansas builds its own income base on Form AR1000F instead of starting from federal AGI or taxable income, and the 2025 Arkansas instructions contain no deduction for tips or overtime, so the federal deductions don't carry over. A bill to create an Arkansas overtime exemption (HB 1822, the "Overtime but not Overtaxed Act") died in House committee at the end of the 2025 session. [Arkansas DFA — 2025 AR1000F/AR1000NR instructions] |
| California | Taxes it | Taxes it | California's Franchise Tax Board says California does not conform to either deduction: California's IRC conformity date is January 1, 2025, and both deductions were added to federal law after that date. 2026 bills to create California versions (AB 1550, SB 984) were not enacted, so both amounts stay California-taxable. [California Franchise Tax Board — Summary of Federal Income Tax Changes (OBBBA)] |
| Colorado | Conforms | Taxes it | The Colorado Department of Revenue says no addback is required for the federal tips deduction, but for tax years 2026 and later the full federal overtime deduction claimed on Schedule 1-A must be added back on the Colorado return. Tips therefore stay Colorado-deductible, while overtime is Colorado-taxable again from 2026. [Colorado Dept. of Revenue — Individual Income Tax Guide] |
| Connecticut | Taxes it | Taxes it | Connecticut's income tax starts from federal adjusted gross income (Form CT-1040, line 1), and the 2025 CT-1040 instructions list no subtraction for tips or overtime, so the federal deductions (taken after AGI) never reach the Connecticut return. 2026 bills to exempt them (HB 5010, SB 66) were referred to the Finance, Revenue and Bonding Committee and not enacted. [Connecticut DRS — 2025 Form CT-1040 instructions] |
| Delaware | Taxes it | Taxes it | Delaware's Division of Revenue says the OBBBA deductions for tips and overtime are not itemized deductions and "will not flow through to the Delaware Personal Income Tax" (Delaware starts from federal AGI). SB 351, which would create a Delaware overtime subtraction, was introduced June 23, 2026 and has not passed. [Delaware Division of Revenue — Tax Season Updates] |
| District of Columbia | Unclear | Unclear | Tax year 2025: DC did not allow either deduction — the DC Chief Financial Officer's fiscal impact statement says they "were not authorized deductions in tax year 2025." Tax year 2026: the Fiscal Year 2027 Budget Support Act of 2026 (Act A26-0418, enacted August 14, 2026) allows both deductions starting in tax year 2026, but it was sent to Congress for review on August 20, 2026 with a projected law date of November 20, 2026. Congress overturned DC's earlier tax conformity act in February 2026, so the 2026 treatment is not final until that review ends. [DC Council — B26-0661, Fiscal Year 2027 Budget Support Act of 2026 (legislative history)] |
| Florida | No income tax | No income tax | No broad-based state income tax on wages — the federal tips/overtime deduction question doesn't arise because there's no state income tax base to deduct from. [Florida Constitution, Art. VII, §5 (no income tax on natural persons)] |
| Georgia | Partial | Partial | Georgia did not conform to the federal deductions, but for 2026 the Department of Revenue says up to $1,750 of overtime and up to $1,750 of tips may each be excluded from Georgia taxable net income (HB 463, which limits the overtime exclusion to full-time hourly employees). Anything above $1,750 stays Georgia-taxable even when it is fully federal-deductible, and the exclusions do not apply to 2025. [Georgia Dept. of Revenue — Important Tax Updates] |
| Hawaii | Conforms | Taxes it | Act 35 (HB 2329, effective May 26, 2026) updated Hawaii's IRC conformity to December 31, 2025 for tax years beginning after December 31, 2025. The Department of Taxation says Hawaii conforms to the federal tips deduction (IRC §224) but does not conform to the overtime deduction (IRC §225). Because Act 35 starts with tax year 2026, neither deduction applies on 2025 Hawaii returns. [Hawaii Dept. of Taxation — Announcement No. 2026-06 (Act 35)] |
| Idaho | Conforms | Conforms | Idaho's House Bill 559 conformed Idaho to most of OBBBA, including the deductions for qualified tips and overtime compensation. The Tax Commission implemented them partway through the 2025 filing season; they are claimed through the Form 40 line 18 instructions, with no new form lines. [Idaho State Tax Commission — 2025 conformity is law (HB 559)] |
| Illinois | Taxes it | Taxes it | Illinois base income starts from federal adjusted gross income, and the federal tips and overtime deductions are taken after AGI, so they never reduce Illinois income. The Illinois Schedule M instructions offer no matching subtraction, and a bill to create one (HB 4974) has not been enacted. The flat 4.95% Illinois rate applies to both. [Illinois Dept. of Revenue — Schedule M instructions] |
| Indiana | Conforms | Conforms | The Indiana Department of Revenue allows deductions for qualified tips and qualified overtime compensation "for taxable year 2026 only", limited to the amount deducted federally. They were not available on 2025 Indiana returns, and unless Indiana extends them they end after 2026 even though the federal deductions run through 2028. [Indiana Dept. of Revenue — Individual income tax deductions] |
| Iowa | Conforms | Conforms | The Iowa Department of Revenue says Iowa's starting point is federal taxable income and Iowa has rolling IRC conformity, so the federal tips and overtime deductions carry into Iowa taxable income automatically; no separate Iowa claim is needed. [Iowa Dept. of Revenue — Impact of OBBBA on employee withholding] |
| Kansas | Taxes it | Taxes it | Kansas adjusted gross income is built from federal adjusted gross income, and the federal tips and overtime deductions come after AGI, so they don't reduce Kansas income. SB 311, which would have allowed an overtime subtraction from tax year 2026, died in the 2026 session; no tips subtraction was enacted either. [Kansas Legislature — SB 311 (died)] |
| Kentucky | Taxes it | Taxes it | The Kentucky Department of Revenue's 2025 instructions say federal changes enacted after Kentucky's IRC conformity date (KRS 141.010(21)) don't apply, and that "qualified tips, overtime income, and car loan interest are not deductible on the Kentucky return." A 2026 bill to allow them (HB 452) stalled in committee. [Kentucky Dept. of Revenue — 2025 Form 740-NP instructions] |
| Louisiana | Taxes it | Taxes it | Louisiana's income tax starts from federal adjusted gross income (La. R.S. 47:293), and the statute's list of Louisiana subtractions has no deduction for tips or overtime. The federal deductions come after AGI, so they don't reduce Louisiana income; 2025 bills to create Louisiana deductions (such as HB 414) were not enacted. [Louisiana Legislature — La. R.S. 47:293] |
| Maine | Taxes it | Taxes it | Maine Revenue Services says the federal tips and overtime deductions are "below-the-line" changes that don't affect federal AGI and, absent conforming legislation, "have no effect on Maine tax law." The Governor's 2026 supplemental budget proposed keeping that treatment, and no conforming law was found. [Maine Revenue Services — Maine Tax Alert, October 2025] |
| Maryland | Taxes it | Taxes it | The Comptroller of Maryland's January 2026 Tax Alert says the federal deductions for tips and overtime (tax years 2025–2028) don't affect federal AGI, Maryland's starting point, so they don't flow to the Maryland return and aren't reported on it. A 2026 overtime subtraction bill (HB 1035) got a committee hearing but did not pass. [Comptroller of Maryland — Tax Alert: Maryland Impacts of the One Big Beautiful Bill Act] |
| Massachusetts | Taxes it | Taxes it | The Massachusetts DOR's 2025 Form 1 instructions say: "Massachusetts does not adopt the federal deduction for tip income (IRC § 224) or the federal deduction for overtime pay (IRC § 225)." Both stay Massachusetts-taxable. [Massachusetts DOR — 2025 Form 1 instructions] |
| Michigan | Conforms | Conforms | Public Act 24 of 2025 created Michigan deductions equal to the federal qualified tips and overtime deductions for tax years 2026, 2027 and 2028. Michigan Treasury confirms they are not available on 2025 Michigan returns. [Michigan Dept. of Treasury — New Deductions for Qualified Overtime Compensation and Qualified Tips] |
| Minnesota | Taxes it | Taxes it | Minnesota's return starts from federal adjusted gross income, and the federal tips and overtime deductions come after AGI. The 2026 Tax Bill (Minnesota Laws 2026, Chapter 128, signed May 27, 2026) moved Minnesota's IRC conformity date to May 1, 2026, but the Department of Revenue's summary of its individual income changes adds no subtraction for tips or overtime, so both stay Minnesota-taxable. [Minnesota Dept. of Revenue — Tax Law Changes (2026 Tax Bill)] |
| Mississippi | Taxes it | Taxes it | Mississippi computes income from its own categories on Form 80-105 rather than starting from federal AGI or taxable income. Its 2025 instructions mention the federal One Big Beautiful Bill Act only for the itemized SALT limit and provide no deduction for tips or overtime, and the Department of Revenue's summary of 2026 legislation adds none. [Mississippi Dept. of Revenue — 2025 individual income tax instructions] |
| Missouri | Taxes it | Taxes it | Missouri adjusted gross income is federal adjusted gross income plus or minus the modifications listed in RSMo 143.121, and that list has no subtraction for tips or overtime. The federal deductions come after AGI, so they don't reduce Missouri income. A 2025 bill to add Missouri deductions (HB 860) did not pass. [Revisor of Missouri — RSMo 143.121 (Missouri adjusted gross income)] |
| Montana | Conforms | Conforms | Montana's Form 2 starts from federal adjusted gross income and subtracts the federal standard or itemized deduction plus the Schedule 1-A deductions to reach federal taxable income. The Department of Revenue's 2025 instructions state that the Schedule 1-A deductions for qualified tips and qualified overtime compensation "are included in the calculation of Montana taxable income." [Montana Dept. of Revenue — 2025 Form 2 instructions] |
| Nebraska | Taxes it | Taxes it | Nebraska's Form 1040N starts from federal adjusted gross income and applies Nebraska's own standard deduction, so the federal tips and overtime deductions (taken after AGI) don't reduce Nebraska income. LB 933, which would have created a Nebraska adjustment for tip income and overtime compensation, was indefinitely postponed in the 2026 session. [Nebraska Legislature — 2026 bills (LB 933 indefinitely postponed)] |
| Nevada | No income tax | No income tax | No broad-based state income tax on wages — the federal tips/overtime deduction question doesn't arise because there's no state income tax base to deduct from. [Nevada Dept. of Taxation — Income Tax in Nevada] |
| New Hampshire | No income tax | No income tax | New Hampshire has never taxed wages, and its Interest and Dividends Tax was repealed for taxable periods beginning after December 31, 2024 — so tips and overtime are not subject to any New Hampshire income tax and there is no conformity question. [New Hampshire DRA — Interest & Dividends Tax (repealed)] |
| New Jersey | Taxes it | Taxes it | Official New Jersey Division of Taxation guidance: "federal deductions under the federal OBBBA regarding overtime, tips, and senior citizens do not affect a taxpayer's New Jersey Individual Income Tax return." New Jersey defines its own income categories rather than starting from federal AGI. [New Jersey Division of Taxation — OBBBA and the New Jersey Gross Income Tax] |
| New Mexico | Taxes it | Taxes it | New Mexico's PIT-1 starts from federal adjusted gross income and takes its deduction from the federal standard or itemized deduction on Form 1040 line 12; the Schedule 1-A tips and overtime deductions are not carried over, and the 2025 PIT-1 instructions provide no New Mexico deduction for them. HB 264 (2026), which would have created New Mexico deductions for tips and overtime, died after being postponed indefinitely. [New Mexico Taxation and Revenue Dept. — 2025 PIT-1 instructions] |
| New York | Conforms | Taxes it | Tips: the FY2027 budget, signed by Governor Hochul, "eliminates state income taxes on up to $25,000 of tipped income in tax year 2026" (Division of the Budget), after 2025 returns got no New York benefit. Overtime: the budget included no overtime provision, and the federal overtime deduction is taken after AGI, so it doesn't flow through to New York — overtime stays New York-taxable. [New York Division of the Budget — Governor Hochul signs FY 2027 Budget] |
| North Carolina | Taxes it | Taxes it | The NC Department of Revenue says the federal tips and overtime deductions are taken after AGI and "do not affect North Carolina taxable income"; even after North Carolina updated its IRC reference to July 5, 2025, the General Assembly did not enact a North Carolina deduction. House Bill 11 (No Tax on Tips, Overtime, Bonus Pay) remains in committee. [NC Dept. of Revenue — Q&A on the impact of federal law on NC income tax returns] |
| North Dakota | Conforms | Conforms | North Dakota's starting point is federal taxable income, and the Office of State Tax Commissioner says that starting point "perpetually conforms" to the federal computation, so federal changes, including the tip income and overtime pay deductions, are included by default for all years. [North Dakota Office of State Tax Commissioner — 2025 individual income tax booklet] |
| Ohio | Taxes it | Taxes it | Ohio starts from federal adjusted gross income. Ohio's Legislative Service Commission, in its February 2026 analysis of an Ohio IRC conformity bill, notes that the OBBBA deductions for tips and overtime "do not affect Ohio law": they are taken after federal AGI, so they don't flow through to Ohio taxable income. [Ohio Legislative Service Commission — IRC conformity bill analysis (Feb. 2026)] |
| Oklahoma | Taxes it | Taxes it | Oklahoma's Form 511 starts from federal adjusted gross income, and the 2025 Oklahoma instructions contain no subtraction for tips or overtime, so the federal deductions (taken after AGI) don't reduce Oklahoma income. HB 3377 (2026), which would have created an Oklahoma tips deduction, never left its House subcommittee. [Oklahoma Tax Commission — 2025 Form 511 instructions] |
| Oregon | Conforms | Conforms | Oregon's return starts from federal adjusted gross income, and Oregon allows both amounts as state subtractions: the Department of Revenue's Publication OR-17 lists "Federal deduction for tip income" (code 390) and "Federal deduction for overtime wages" (ORS 316.048, code 391) for full-year residents, with part-year and nonresident versions limited to Oregon-source amounts. [Oregon Dept. of Revenue — 2025 Publication OR-17] |
| Pennsylvania | Taxes it | Taxes it | Pennsylvania's Department of Revenue says, for both IRC §224 (tips) and §225 (overtime): "N/A - PA Personal Income Tax has no provision to exempt" that income. Pennsylvania taxes compensation under its own definition rather than starting from federal AGI or taxable income. [Pennsylvania Dept. of Revenue — Tax Cuts and Jobs / One Big Beautiful Bill Acts] |
| Rhode Island | Taxes it | Taxes it | Rhode Island's Division of Taxation (Advisory 2025-20, Oct. 2, 2025) says the federal tips and overtime deductions are below the line, not reflected in federal AGI (Rhode Island's starting point), and that "Rhode Island is decoupled from this tax treatment." The Division's summary of 2026 legislation adds no tips or overtime modification, so both remain Rhode Island-taxable. [Rhode Island Division of Taxation — Advisory 2025-20] |
| South Carolina | Taxes it | Taxes it | Tax year 2026: H. 4216 (Act No. 110, signed March 30, 2026) makes federal adjusted gross income South Carolina's starting point and replaces the federal standard and itemized deductions with a South Carolina deduction (SCIAD), with no deduction for tips or overtime. Tax year 2025: South Carolina conforms to the IRC only as of December 31, 2024, before OBBBA; the House-passed conformity and overtime bill (H. 3368) stalled in the Senate. [South Carolina Dept. of Revenue — Information about H. 4216] |
| South Dakota | No income tax | No income tax | No broad-based state income tax on wages — the federal tips/overtime deduction question doesn't arise because there's no state income tax base to deduct from. [South Dakota Dept. of Revenue — Individual taxes] |
| Tennessee | No income tax | No income tax | No broad-based state income tax on wages — the federal tips/overtime deduction question doesn't arise because there's no state income tax base to deduct from. [Tennessee Dept. of Revenue — GEN-34, Income Tax Withholding] |
| Texas | No income tax | No income tax | No broad-based state income tax on wages — the federal tips/overtime deduction question doesn't arise because there's no state income tax base to deduct from. [Texas Constitution, Art. 8, §24-a (individual income tax prohibited)] |
| Utah | Taxes it | Taxes it | Utah's TC-40 starts from federal adjusted gross income, and the only federal deduction Utah uses — in its taxpayer tax credit — is the standard or itemized deduction from Form 1040 line 12e, which excludes the Schedule 1-A tips and overtime deductions. No Utah law adding them was found. This row rests on the form mechanics; the Tax Commission has not published a statement on these two deductions. [Utah State Tax Commission — TC-40 line-by-line instructions] |
| Vermont | Taxes it | Taxes it | Vermont's return starts from federal adjusted gross income (Form IN-111, line 1). The Department of Taxes says Vermont's retroactive conformity to OBBBA applies to the calculation of adjusted gross income, and the federal tips and overtime deductions are taken after AGI, so they don't reduce Vermont income. [Vermont Dept. of Taxes — Instructions for VT tax conformity to OBBBA] |
| Virginia | Taxes it | Taxes it | HB 29 (2026 Acts of Assembly, Chapter 7) fixed Virginia's IRC conformity at December 31, 2025. Virginia Tax Bulletin 26-1 says Virginia conforms to the federal law only to the extent it affects federal adjusted gross income or federal itemized deductions — the tips and overtime deductions affect neither. 2026 bills for partial Virginia subtractions (SB 143, SB 694) do not appear in Virginia Tax's 2026 legislative summary. [Virginia Tax — Tax Bulletin 26-1] |
| Washington | No income tax | No income tax | Washington does not tax wage income in 2025 or 2026, so the federal tips and overtime deductions have nothing to reduce. ESSB 6346 (Chapter 238, Laws of 2026) imposes a 9.9% tax on Washington taxable income above $1,000,000 beginning January 1, 2028; at that income level the federal tips and overtime deductions are already fully phased out. [Washington Legislature — ESSB 6346, Chapter 238, Laws of 2026] |
| West Virginia | Taxes it | Taxes it | West Virginia starts from federal adjusted gross income. The Tax Department's 2026 fiscal note on HB 4963 says the federal tips and overtime deductions "are not included in federal adjusted gross income, which is the starting point" for West Virginia tax. HB 4963, SB 492 and SB 460 (2026), which would have created West Virginia versions, all died in Finance committees. [West Virginia Legislature — Tax Department fiscal note on HB 4963 (2026)] |
| Wisconsin | Taxes it | Taxes it | The Wisconsin Department of Revenue says Wisconsin "has not adopted" either federal deduction. Gov. Evers vetoed SB 36 (tips) and AB 461 (overtime) on April 3, 2026, and the vetoes were sustained; a tips-and-overtime subtraction in the May 2026 special session (Senate Bill 1) failed to pass the Senate on May 14, 2026. [Wisconsin Dept. of Revenue — 2025 tax update] |
| Wyoming | No income tax | No income tax | No broad-based state income tax on wages — the federal tips/overtime deduction question doesn't arise because there's no state income tax base to deduct from. [State of Wyoming — About Wyoming] |
A note on how we verified this
State conformity to OBBBA's tips and overtime deductions is unusually volatile — several states settled their position only in 2026 legislative sessions, and status can differ between tax years 2025 and 2026 within the same state. The badges show the tax year 2026 position. Every row is sourced to that state's own primary record: Department of Revenue guidance or form instructions, the enacted act or statute, or the legislature's bill record. Third-party conformity trackers were used only to find those records, never as the source — one widely cited tracker labeled several states that start from federal adjusted gross income as "conforming" when their own revenue departments say otherwise. Where a state has published no explicit statement and the answer rests on how its return is built (Utah, for example), the note says so. If you're making a filing decision based on this page, confirm directly with your state's Department of Revenue.
Mixed and partial conformity — read the fine print
- Georgia caps its own tips AND overtime exclusions at $1,750/year each starting in 2026 — far below the federal $25,000 tips cap and $12,500/$25,000 overtime cap. Anything above Georgia's own cap is still state-taxable even though it's fully federal-deductible.
- Alabama taxes tips but lets taxpayers deduct up to $1,000 a year of overtime premium for 2026 through 2028 (Act 2026-604).
- Colorado conforms to the tips deduction, but requires the full federal overtime deduction to be added back starting with 2026 returns.
- Hawaii conforms to the tips deduction but not the overtime deduction, starting with tax year 2026 (Act 35).
- New York taxed tips on 2025 returns but exempts up to $25,000 of tips for tax year 2026. New York has not conformed to the overtime deduction.
- Indiana and Michigan taxed both tips and overtime for 2025. Michigan allows both for 2026-2028; Indiana's deductions are for tax year 2026 only.
- DC did not allow either deduction for 2025. Its Fiscal Year 2027 Budget Support Act allows both starting in 2026, but that act is still under congressional review, so 2026 is marked unclear until it becomes law.
Frequently asked questions
Does the federal no-tax-on-tips deduction automatically apply to my state return?
No. The OBBBA qualified tips deduction (IRC §224) and qualified overtime deduction (IRC §225) are federal-only — they reduce your federal taxable income via new Schedule 1-A, not automatically your state taxable income. Whether your state also excludes this income depends entirely on that state's own conformity choice. As of September 2026, 33 of the 42 states (and DC) that levy an income tax currently tax at least some tips or overtime income that's federal-deductible.
Which states fully conform to both the tips and overtime deductions?
For tax year 2026: Iowa, Montana, and North Dakota pass both deductions through because their tax base starts from federal taxable income; Arizona, Idaho, and Oregon allow both through state legislation or subtractions; Indiana (2026 only) and Michigan (2026-2028) allow both starting with 2026 returns, after taxing this income on 2025 returns.
Why do California and Illinois still tax tips and overtime, and what changed in New York?
California's Franchise Tax Board says California does not conform: its IRC conformity date is January 1, 2025, and both deductions were added to federal law later. Illinois starts from federal adjusted gross income and has no matching Schedule M subtraction, so the deductions, which come after AGI, never reduce Illinois income. New York taxes overtime (no matching legislation was enacted), but its FY2027 budget exempts up to $25,000 of tips for tax year 2026, after taxing them on 2025 returns.
What does it mean when a state "conforms" or "doesn't conform"?
States generally start their own income tax calculation from a federal figure — either federal adjusted gross income (AGI) or federal taxable income. A state with "rolling" conformity to federal taxable income tends to pick up new federal deductions like these automatically. A state with "static" conformity (pegged to a fixed date before OBBBA was enacted), one that starts from federal AGI instead of taxable income, or one that computes wages under its own independent rules, generally does NOT get the new deduction unless it passes its own separate law — meaning you "add back" the tip or overtime income that's federal-tax-free when you calculate your state return.
Is this page up to date?
State conformity to OBBBA is an actively evolving area — legislative sessions were still passing bills on this topic well into 2026. This table was last verified September 2026 against each state's own Department of Revenue guidance, form instructions, enacted legislation, or statute. Rows marked "unclear" (1 as of September 2026) are ones where the governing law for 2026 is not yet final — always confirm your specific state's current position before filing.
Sources
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