How many states allow each deduction
How the 42 places with a wage tax (41 states and D.C.) answer for each deduction. The other nine states don't tax wages. "Other" is Massachusetts, which we couldn't check yet, plus New Mexico's unconfirmed car loan answer and Utah's own senior rule.
| Deduction and year | Allowed | Own deduction | Not allowed | Not said yet | Other |
|---|---|---|---|---|---|
| Tips, 2025 | 7 | 0 | 22 | 12 | 1 |
| Tips, 2026 | 8 | 1 | 11 | 21 | 1 |
| Overtime, 2025 | 7 | 0 | 22 | 12 | 1 |
| Overtime, 2026 | 5 | 2 | 12 | 22 | 1 |
| Senior deduction, 2025 | 6 | 0 | 15 | 19 | 2 |
| Senior deduction, 2026 | 4 | 0 | 9 | 28 | 1 |
| Car loan interest, 2025 | 8 | 0 | 18 | 14 | 2 |
| Car loan interest, 2026 | 5 | 0 | 11 | 24 | 2 |
States that split or wrote their own rules
Colorado and Hawaii: tips allowed, overtime not allowed in 2026
Colorado starts from federal taxable income, so for 2025 all four federal deductions carried over. A 2025 law, HB 25-1296, makes Colorado filers add back the federal overtime deduction from 2026, while tips, the senior deduction and car loan interest still carry over (Colorado Office of the State Auditor, report 2026-TE5, June 29, 2026).
Hawaii's 2026 conformity law, Act 35, adopts the federal tips deduction from 2026 but not overtime or car loan interest (Hawaii Department of Taxation, Tax Announcement 2026-06, July 31, 2026). For 2025, Hawaii follows the federal code "as amended as of December 31, 2024", before these deductions existed, so none of the four apply (Hawaii Department of Taxation, 2025 Form N-11 instructions, 2025 tax year (file updated Nov. 25, 2025)). Hawaii hasn't said anything about the senior deduction for 2026.
Arizona: tips, overtime and senior with no end date in state law; car loan for 2025 only
Arizona's 2026 tax law lets you subtract the same amounts as the federal tips, overtime and senior deductions for tax years from 2025, with no end year. The car loan interest subtraction runs only "through December 31, 2025" (Arizona Laws 2026, Chapter 140 (HB 4168), A.R.S. §43-1022, signed June 13, 2026). For 2025 returns, the Department of Revenue first put the subtractions on its forms by executive order; they aren't available on Forms 140A and 140EZ (Arizona Department of Revenue, Middle Class Tax Cuts Package worksheet, form published Jan. 1, 2026).
Georgia and Alabama: their own deductions, with lower caps
- Georgia: up to $1,750 of cash tips, and up to $1,750 of overtime for full-time hourly workers, for 2026 to 2028; both parts of the law are repealed December 31, 2028 (Georgia HB 463 (2026), as signed, May 11, 2026). A separate law, HB 1199, says the federal deductions don't apply in Georgia.
- Alabama: up to $1,000 of overtime for 2026 to 2028, not tied to the federal $12,500 limit (Alabama Governor's office, HB 527 signing release, Apr. 16, 2026). No state tips deduction. Separately, Alabama's own overtime exemption covered overtime earned in 2025 until June 30, then ended (Department of Revenue notice, June 4, 2025).
Michigan, Indiana and New York: state laws equal to the federal deduction
- Michigan: tips and overtime deductions generally equal to the federal amounts, for 2026, 2027 and 2028 only, not 2025 (Michigan Department of Treasury, taxpayer notice, Jan. 6, 2026). More on Michigan.
- Indiana: tips, overtime and car loan interest deductions equal to the federal amounts, for 2026 only (Indiana Department of Revenue, Information Bulletin #128, June 2026).
- New York: a subtraction of up to $25,000 of the federal tips deduction, from tax year 2026 (Tax Law §612(c)(48), New York Chapter 59 of 2026 (S.9009-C/A.10009-C), Part B, Tax Law §612(c)(48), signed May 28, 2026). Overtime, the senior deduction and car loan interest aren't covered.
Kentucky: written into law
Kentucky's statute now lists the federal tips (§224), overtime (§225) and car loan interest (§163(h)(4)) deductions among deductions Kentucky doesn't allow (Kentucky Revised Statutes 141.019(2), as amended by 2026 HB 757, effective July 15, 2026). Its 2025 instructions already said these "are not deductible on the Kentucky return" (Kentucky Department of Revenue, 2025 Form 740 instructions, 2025 tax year). The senior deduction isn't named in either, but the instructions say federal changes made after Kentucky's conformity date "do not apply to Kentucky returns", and the statute bars deductions under federal §151, where the senior deduction sits.
South Carolina: not allowed for 2025, open for 2026
South Carolina tells filers who claimed the senior, tips, overtime or car loan deduction on their 2025 federal return to adjust their state return (South Carolina Department of Revenue, Information Letter #26-4 (revised), Jan. 30, 2026). The House overtime bill, H. 3368, failed its second reading in the Senate 16 to 27 on March 31, 2026. For 2026, a new law, H. 4216 (signed March 30, 2026), makes federal adjusted gross income the starting point and replaces the federal standard deduction with a state one; the Department of Revenue's summary (April 15, 2026) doesn't mention the four deductions, so 2026 is "Not said yet". The state's tax code still follows the federal code as of December 31, 2024; a 2026 bill to update it, H. 5167, stayed in committee.
Washington, D.C.: not allowed for 2025, open for 2026
The District "does not allow" the four federal Schedule 1-A deductions on 2025 returns (D.C. Office of Tax and Revenue, 2025 D-40 booklet, cover marked "Revised 05/2025"). A temporary law, D.C. Law 26-89, also listed them as not allowed, but it took effect February 12, 2026, and expired after 225 days. A permanent bill was still in committee when we checked.
Utah: the senior deduction counts in one place
Utah says the new federal deductions "will have no effect on the Utah return" because they are taken "below the line" (Utah State Tax Commission, 2025 tax update webinar, Jan. 15, 2026). The senior deduction is the one exception, in a narrow way: the 2025 TC-40 instructions count it in the qualified exempt taxpayer worksheet, which decides whether a lower-income filer owes no Utah tax (Utah State Tax Commission, 2025 TC-40 instructions, 2025 tax year). That's why the table says "Own rule".
Does your state tax tips and overtime? State by state
One line per answer, with the source and its date. Quotes are shortened; follow the link for the full text.
Alabama
Alabama doesn't follow the federal tips, overtime or senior deductions. It allows car loan interest only if you itemize on your Alabama return: the interest goes on Alabama Schedule A (2025 Form 40 booklet). From 2026 it has its own overtime deduction of up to $1,000 a year, for 2026 to 2028 (HB 527). Separately, Alabama's own overtime exemption covered overtime earned in 2025 until June 30, then ended (Department of Revenue notice, June 4, 2025).
- Not allowed: Tips and the senior deduction, 2025 and 2026; overtime, 2025. Source: Alabama Department of Revenue, OBBBA executive summary, Oct. 31, 2025 (updated Nov. 10, 2025). “New Section 224 – No Tax on Tips ... Tied to Federal: No”
- Own deduction: Overtime, 2026. Source: Alabama Governor's office, HB 527 signing release, Apr. 16, 2026. “provides an income tax deduction for qualified overtime compensation, up to $1,000 ... will apply for tax years 2026 through 2028”
- Allowed: Car loan interest, 2025 and 2026. Source: Alabama Department of Revenue, OBBBA executive summary, Oct. 31, 2025 (updated Nov. 10, 2025). “I.R.C. § 163(h) - No Tax on Car Loan Interest ... Tied to Federal: Yes”
Arizona
Arizona lets you subtract the same amounts as the federal tips, overtime and senior deductions, starting with 2025 and with no end year in the law. The car loan interest subtraction is for 2025 only. The subtraction isn't available on Forms 140A and 140EZ.
- Allowed: Tips, overtime, the senior deduction and car loan interest, 2025. Source: Arizona Department of Revenue, Middle Class Tax Cuts Package worksheet, form published Jan. 1, 2026. “Taxpayers who qualify for the following federal deductions may also take these deductions on their 2025 Arizona state individual income tax …”
- Allowed: Tips, overtime and the senior deduction, 2026. Source: Arizona Laws 2026, Chapter 140 (HB 4168), A.R.S. §43-1022, signed June 13, 2026. “the amount of qualified tips received during the taxable year that is deducted under section 224 of the internal revenue code”
- Not allowed: Car loan interest, 2026. Source: Arizona Laws 2026, Chapter 140 (HB 4168), A.R.S. §43-1022, signed June 13, 2026. “For taxable years beginning from and after December 31, 2024 through December 31, 2025, to the extent not already excluded from Arizona …”
Arkansas
We found no statement from the Department of Finance and Administration. A 2025 overtime bill (HB 1822) was found only as introduced.
- Not said yet: All four deductions, 2025 and 2026. We found no statement from the state.
California
California doesn't allow any of the four. Its tax law follows the federal code as of January 1, 2025, before these deductions existed. A bill to add tips and overtime (AB 1550) was held in committee.
- Not allowed: All four deductions, 2025 and 2026. Source: California Franchise Tax Board, Summary of Federal Income Tax Changes, page not dated; checked Nov. 7, 2026. “As a result, California does not conform to the deduction for tips received.”
Colorado
Colorado starts from federal taxable income, so the federal deductions carry over. The exception is overtime from 2026: a 2025 law (HB 25-1296) makes you add the federal overtime deduction back. The Department of Revenue's site blocked our checks, so these answers come from the State Auditor's June 2026 report.
- Allowed: Tips, the senior deduction and car loan interest, 2025 and 2026; overtime, 2025. Source: Colorado Office of the State Auditor, report 2026-TE5, June 29, 2026. “Colorado generally conforms to federal taxable income and has not decoupled from this provision; therefore, the reduction in federal …”
- Not allowed: Overtime, 2026. Source: Colorado Office of the State Auditor, report 2026-TE5, June 29, 2026. “Colorado decoupled from this provision preemptively, starting in Tax Year 2026, as part of House Bill 25-1296”
Connecticut
We found no statement from the Department of Revenue Services. 2026 bills to add tips or overtime deductions were found, but we couldn't confirm whether any was enacted: the Legislature's site failed a security (TLS) check, and the department's list of 2026 tax developments doesn't mention one.
- Not said yet: All four deductions, 2025 and 2026. Tips and overtime bills were found, but we couldn't confirm whether any was enacted.
Delaware
Delaware says the federal tips, overtime and car loan deductions don't apply on its return, in a statement not limited to one year. It doesn't mention the senior deduction.
- Not allowed: Tips, overtime and car loan interest, 2025 and 2026. Source: Delaware Division of Revenue, Tax Season Updates, page not dated (2025 filing season); checked Nov. 7, 2026. “OBBBA deductions for no tax on tips, overtime, and car loan interest are not defined federally as itemized deductions and will not flow …”
- Not said yet: The senior deduction, 2025 and 2026. We found no statement from the state.
District of Columbia
The District didn't allow any of the four for 2025. A temporary law (D.C. Law 26-89, effective Feb. 12, 2026) also listed them as not allowed, but it expired after 225 days, around late September 2026. A permanent bill was still in committee when we checked, so 2026 is open.
- Not allowed: Tips, overtime, the senior deduction and car loan interest, 2025. Source: D.C. Office of Tax and Revenue, 2025 D-40 booklet, cover marked "Revised 05/2025". “The District does not allow the following federal schedule 1-A Additional Deductions: No Tax on Tips; No Tax on Overtime; No Tax on Car …”
- Not said yet: Tips, overtime, the senior deduction and car loan interest, 2026. We found no statement from the state.
Georgia
Georgia doesn't follow the federal deductions (HB 1199). Instead it has its own: up to $1,750 of cash tips, and up to $1,750 of overtime for full-time hourly workers, for 2026 to 2028; both parts of the law are repealed December 31, 2028 (HB 463, signed May 11, 2026). The senior deduction isn't mentioned.
- Not allowed: Tips and overtime, 2025; car loan interest, 2025 and 2026. Source: Georgia HB 1199 (2026), as signed, 2026 session; applies from tax year 2025. “Section 163(h)(4) ... Section 224, Section 225 ... of the Internal Revenue Code of 1986, as amended, shall be treated as if they were not in effect”
- Own deduction: Tips and overtime, 2026. Source: Georgia HB 463 (2026), as signed, May 11, 2026. “For all taxable years beginning on or after January 1, 2026, any amount up to $1,750.00 received in cash tips.”
- Not said yet: The senior deduction, 2025 and 2026. We found no statement from the state.
Hawaii
For 2025, Hawaii follows the federal code as amended as of December 31, 2024, before these deductions existed, so none of the four apply. Hawaii's 2026 conformity law (Act 35) adopts the federal tips deduction from 2026, but not overtime or car loan interest. We found nothing on the senior deduction for 2026.
- Not allowed: Tips, overtime, the senior deduction and car loan interest, 2025. Source: Hawaii Department of Taxation, 2025 Form N-11 instructions, 2025 tax year (file updated Nov. 25, 2025). “Hawaii conforms to certain provisions of the Internal Revenue Code of 1986, as amended as of December 31, 2024, and applies to taxable …”
- Allowed: Tips, 2026. Source: Hawaii Department of Taxation, Tax Announcement 2026-06, July 31, 2026. “New federal provisions that Hawaiʻi conforms to include ... IRC section 224, which creates a deduction of up to $25,000 for qualified tips.”
- Not allowed: Overtime and car loan interest, 2026. Source: Hawaii Department of Taxation, Tax Announcement 2026-06, July 31, 2026. “New federal provisions that Hawaiʻi does not conform to include ... IRC section 225, which creates a deduction of up to $12,500 for qualified overtime compensation.”
- Not said yet: The senior deduction, 2026. We found no statement from the state.
Idaho
Idaho adopted all four for 2025 (HB 559, retroactive to January 1, 2025). For 2026 Idaho hasn't said in words, but it uses the federal code as of January 1, 2026, and a July 2026 draft of its rules lists all four deductions, so 2026 will likely follow 2025 unless the state says otherwise.
- Allowed: Tips, overtime, the senior deduction and car loan interest, 2025. Source: Idaho State Tax Commission, "Update on filing 2025 Idaho income taxes now that conformity is law", Feb. 17, 2026. “House Bill 559 conforms to most of the provisions in the federal One Big Beautiful Bill Act. This includes the larger standard deduction …”
- Not said yet: Tips, overtime, the senior deduction and car loan interest, 2026. Likely to follow 2025 unless the state says otherwise (federal code date January 1, 2026, and draft rules).
Illinois
We found no statement from the Department of Revenue. 2025 bills were found only as introduced.
- Not said yet: All four deductions, 2025 and 2026. We found no statement from the state.
Indiana
Indiana didn't allow them for 2025. For 2026 only, a state law allows tips, overtime and car loan interest deductions equal to the federal Schedule 1-A amounts, with limits for part-year residents and nonresidents. The senior deduction isn't covered.
- Not allowed: Tips, overtime and car loan interest, 2025. Source: Indiana Department of Revenue, Information Bulletin #128, June 2026. “However, these deductions are in place only for the 2026 tax year.”
- Allowed: Tips, overtime and car loan interest, 2026. Source: Indiana Department of Revenue, Information Bulletin #128, June 2026. “In 2026, the Indiana General Assembly enacted IC 6-3-2-31, IC 6-3-2-32, and IC 6-3-2-33, which created new deductions for tips, overtime …”
- Not said yet: The senior deduction, 2025 and 2026. We found no statement from the state.
Iowa
Iowa says it follows all four federal deductions, for 2025 and for 2026.
- Allowed: All four deductions, 2025 and 2026. Source: Iowa Department of Revenue, "Impact of One, Big, Beautiful Bill Act on Employee Withholding", page not dated; checked Nov. 7, 2026. “Iowa will conform with the federal tax provisions related to no tax on tips, no tax on overtime,no tax on car loan interest,and the new …”
Kansas
We found no statement from the Department of Revenue. A tips bill (SB 277) died, and an overtime bill was found only as introduced.
- Not said yet: All four deductions, 2025 and 2026. We found no statement from the state.
Kentucky
Kentucky's 2025 instructions say federal changes made after its conformity date don't apply, naming tips, overtime and car loan interest. A 2026 law (HB 757) writes those three into the statute, which also bars deductions under federal §151, where the senior deduction sits.
- Not allowed: Tips, overtime, the senior deduction and car loan interest, 2025. Source: Kentucky Department of Revenue, 2025 Form 740 instructions, 2025 tax year. “Recent federal income tax changes were enacted after Kentucky’s conformity date set forth in KRS 141.010(21). As a result, these federal changes do not apply to Kentucky returns. Items such as qualified tips, overtime income, and car loan interest are not deductible on the Kentucky return.”
- Not allowed: Tips, overtime, the senior deduction and car loan interest, 2026. Source: Kentucky Revised Statutes 141.019(2), as amended by 2026 HB 757, effective July 15, 2026. “(g) Any deduction allowed by 26 U.S.C. sec. 151 for personal exemptions and any other deductions in lieu thereof; … (k) Any deduction allowed by 26 U.S.C. sec. 224 for qualified tips; (l) Any deduction allowed by 26 U.S.C. sec. 225 for qualified overtime compensation; and (m) Any deduction allowed by 26 U.S.C. sec. 163(h)(4) for qualified passenger vehicle loan interest.”
Louisiana
We found no statement from the Department of Revenue, and no 2025 or 2026 law adopting the deductions.
- Not said yet: All four deductions, 2025 and 2026. We found no statement from the state.
Maine
Maine says none of the four apply, for tax years after 2024. Its 2026 conformity law added no subtraction for them.
- Not allowed: All four deductions, 2025 and 2026. Source: Maine Revenue Services, Maine Tax Alert, October 2025. “Other federal law changes affecting tax years beginning after 2024 include the new senior tax exemption, the car loan interest deduction …”
Maryland
Maryland's Comptroller says none of the four apply. A 2026 bill for an overtime subtraction (HB 1035) got only as far as a committee hearing.
- Not allowed: All four deductions, 2025 and 2026. Source: Comptroller of Maryland, Tax Alert on the federal law, effective Jan. 6, 2026. “In tax years 2025 through 2028, PL 119-21 allows some special deductions …”
Massachusetts
Not checked: we couldn't read the state's website yet (mass.gov blocked our requests on Nov. 7, 2026). We will add Massachusetts after reading its Department of Revenue guidance.
- Not checked: All four deductions, 2025 and 2026. We couldn't read the state's website yet.
Michigan
Michigan didn't allow them for 2025. For 2026, 2027 and 2028 a state law allows tips and overtime deductions generally equal to the federal amounts; nonresidents count only work in Michigan. The senior deduction and car loan interest aren't addressed. Michigan details.
- Not allowed: Tips and overtime, 2025. Source: Michigan Department of Treasury, taxpayer notice, Jan. 6, 2026. “For the 2025 tax year, deductions for qualifying overtime compensation and qualified tips will not be available in Michigan.”
- Allowed: Tips and overtime, 2026. Source: Michigan Department of Treasury, taxpayer notice, Jan. 6, 2026. “These deductions are only available for the 2026, 2027, and 2028 tax years.”
- Not said yet: The senior deduction and car loan interest, 2025 and 2026. We found no statement from the state.
Minnesota
Minnesota didn't allow any of the four for 2025. 2026 bills for tips and overtime were found, but we couldn't confirm that any became law: the 2026 tax law (Laws 2026, Chapter 128, signed May 27, 2026) updated Minnesota's link to the federal code (Department of Revenue), and the department's summary of 2026 form changes (Oct. 1, 2026) adds no tips or overtime subtraction. Neither says in words how the four are treated.
- Not allowed: Tips, overtime and the senior deduction, 2025. Source: Minnesota Department of Revenue, 2026 tax pro webinar Q&A, February 2026. “There is no addition or subtraction relating to these federal benefits on the Minnesota return.”
- Not said yet: Tips, overtime, the senior deduction and car loan interest, 2026. Tips and overtime bills were found, but we couldn't confirm that any became law.
- Not allowed: Car loan interest, 2025. Source: Minnesota Department of Revenue, 2025 Schedule M1NC instructions, January 2026. “Do not include the following federal deductions on this line as they do not impact adjusted gross income: ... No tax on car loan interest”
Mississippi
We found no statement from the Department of Revenue. A 2026 overtime bill (HB 204) was found only as introduced.
- Not said yet: All four deductions, 2025 and 2026. We found no statement from the state.
Missouri
We found no statement from the Department of Revenue. Bills were found only as introduced or referred.
- Not said yet: All four deductions, 2025 and 2026. We found no statement from the state.
Montana
Montana starts from federal taxable income, and its 2025 instructions carry the four deductions over. We found no Montana statement for 2026; because of that starting point, 2026 will likely follow 2025 unless the state says otherwise.
- Allowed: Tips, overtime, the senior deduction and car loan interest, 2025. Source: Montana Department of Revenue, 2025 Form 2 instructions, 2025 tax year. “The additional deductions found on Form 1040, Schedule 1-A for qualified tips, qualified overtime compensation, qualified passenger vehicle …”
- Not said yet: Tips, overtime, the senior deduction and car loan interest, 2026. Likely to follow 2025 unless the state says otherwise (Montana starts from federal taxable income).
Nebraska
Nebraska's Department of Revenue told the Legislature the federal tips, overtime and car loan deductions don't flow through to Nebraska. It didn't address the senior deduction. A 2026 bill for a state tips and overtime deduction (LB 932) was found, but we couldn't confirm what happened to it.
- Not allowed: Tips, overtime and car loan interest, 2025 and 2026. Source: Nebraska Department of Revenue, report to the Legislature, Sept. 2, 2025. “The deductions for tip income, overtime income, and car loan interest are taken after the computation of the federal AGI and before …”
- Not said yet: The senior deduction, 2025 and 2026. We found no statement from the state.
New Jersey
New Jersey says tips, overtime and the senior deduction don't apply, for 2025 through 2028. It doesn't mention car loan interest.
- Not allowed: Tips, overtime and the senior deduction, 2025 and 2026. Source: New Jersey Division of Taxation, federal law page, updated Dec. 1, 2025. “Therefore, federal deductions under the federal OBBBA regarding overtime, tips, and senior citizens do not affect a taxpayer's New Jersey …”
- Not said yet: Car loan interest, 2025 and 2026. We found no statement from the state.
New Mexico
New Mexico's tax department said in July 2025 that the tips, overtime and senior deductions don't affect New Mexico tax. It counted car loan interest as deductible, but the 2025 PIT-1 instructions don't mention it, so that answer is not confirmed yet. A 2026 bill for state tips and overtime deductions (HB 264) died.
- Not allowed: Tips, overtime and the senior deduction, 2025 and 2026. Source: New Mexico Taxation and Revenue Department, presentation to a legislative committee, July 31, 2025. “New Mexico does not conform • Section 70203 - No Tax on Tips”
- Not confirmed yet: Car loan interest, 2025 and 2026. Source: New Mexico Taxation and Revenue Department, presentation to a legislative committee, July 31, 2025. “Previous law did not allow deduction of 'personal interest.’ Car loan interest will now be deductible …”
New York
New York's 2026–27 budget (Chapter 59 of 2026, signed May 28, 2026) lets you subtract up to $25,000 of the federal tips deduction on your New York return, from tax year 2026 (Tax Law §612(c)(48)). It doesn't cover overtime, the senior deduction or car loan interest, and we found no Tax Department statement for 2025.
- Not said yet: Tips, 2025; overtime, the senior deduction and car loan interest, 2025 and 2026. We found no statement from the state.
- Allowed: Tips, 2026. Source: New York Chapter 59 of 2026 (S.9009-C/A.10009-C), Part B, Tax Law §612(c)(48), signed May 28, 2026. “For taxable years beginning on or after January first, two thousand twenty-six, an amount of up to twenty-five thousand dollars to the …”
North Carolina
North Carolina says none of the four apply on 2025 returns. A 2026 law (S.L. 2026-31) updated its link to the federal code without adding them; we found no 2026 statement from the Department of Revenue.
- Not allowed: Tips, overtime, the senior deduction and car loan interest, 2025. Source: North Carolina Department of Revenue, questions and answers on the federal law, Feb. 9, 2026 (updated Feb. 27, 2026). “No. The New OBBBA Deductions are taken after a taxpayer calculates AGI and therefore do not affect North Carolina taxable income.”
- Not said yet: Tips, overtime, the senior deduction and car loan interest, 2026. We found no statement from the state.
North Dakota
North Dakota starts from federal taxable income, and its 2025 booklet says federal changes to deductions carry over "for all years", naming the senior, tips and overtime deductions. Car loan interest isn't named there, but the Tax Commissioner's June 24, 2026 revenue table lists it among the federal changes that lower North Dakota collections.
- Allowed: All four deductions, 2025 and 2026. Source: North Dakota Office of State Tax Commissioner, 2025 Individual Income Tax booklet, 2025 tax year (file dated Mar. 26, 2026). “The starting point for computing North Dakota taxable income perpetually conforms to the computation of federal taxable income. As a …”
Ohio
The Department of Taxation's conformity page (SB 9, signed March 5, 2026) doesn't mention these deductions, so Ohio hasn't said yet.
- Not said yet: All four deductions, 2025 and 2026. The Department of Taxation's conformity page (SB 9, signed March 5, 2026) doesn't mention these deductions.
Oklahoma
We found no statement from the Oklahoma Tax Commission and no 2026 law on tips or overtime.
- Not said yet: All four deductions, 2025 and 2026. We found no statement from the state.
Oregon
Oregon allows tips, overtime and car loan interest on 2025 returns as subtractions; nonresidents count only Oregon work. It doesn't mention the senior deduction, and we found no 2026 statement.
- Allowed: Tips, overtime and car loan interest, 2025. Source: Oregon Department of Revenue, 2025 Publication OR-17, revised Jan. 29, 2026. “Oregon allows the same deduction for tip income that is allowed on your federal return.”
- Not said yet: Tips, overtime and car loan interest, 2026; the senior deduction, 2025 and 2026. We found no statement from the state.
Pennsylvania
Pennsylvania doesn't use federal income or federal deductions at all, so none of the four apply.
- Not allowed: All four deductions, 2025 and 2026. Source: Pennsylvania Department of Revenue, treatment of the federal tax acts, page not dated; checked Nov. 7, 2026. “N/A - PA Personal Income Tax has no provision to exempt certain tip income from taxation.”
Rhode Island
Rhode Island lists tips, overtime and car loan interest as "allowed on federal filings only" for 2025. It doesn't address the senior deduction or 2026.
- Not allowed: Tips, overtime and car loan interest, 2025. Source: Rhode Island Division of Taxation, Advisory 2025-20, Oct. 2, 2025. “Rhode Island is decoupled from this tax treatment and will not allow for these exclusions from ordinary taxable income.”
- Not said yet: Tips, overtime and car loan interest, 2026; the senior deduction, 2025 and 2026. We found no statement from the state.
South Carolina
South Carolina says the four don't apply on 2025 returns, and the Senate voted down H. 3368, the overtime bill, on March 31, 2026. From 2026, a new law (H. 4216) starts the state return from federal adjusted gross income; the state hasn't said how the four deductions are treated.
- Not allowed: Tips, overtime, the senior deduction and car loan interest, 2025. Source: South Carolina Department of Revenue, Information Letter #26-4 (revised), Jan. 30, 2026. “until the South Carolina Legislature addresses conformity, South Carolina taxpayers will need to adjust their return if the following 2025 …”
- Not said yet: Tips, overtime, the senior deduction and car loan interest, 2026. The state's tax code still follows the federal code as of December 31, 2024 (Information Letter #26-4); a 2026 bill to update it, H. 5167, stayed in committee.
Utah
Utah says tips, overtime and car loan interest have no effect on the Utah return for 2025. The senior deduction doesn't lower Utah income either, but it counts in the worksheet that decides whether a lower-income filer owes no Utah tax. We found no 2026 statement.
- Not allowed: Tips, overtime and car loan interest, 2025. Source: Utah State Tax Commission, 2025 tax update webinar, Jan. 15, 2026. “These additional deductions will have no effect on the Utah return as they are a “below the line” deduction.”
- Not said yet: Tips, overtime, the senior deduction and car loan interest, 2026. We found no statement from the state.
- Own rule: The senior deduction, 2025. Source: Utah State Tax Commission, 2025 TC-40 instructions, 2025 tax year. “3. Federal enhanced deduction for seniors. Enter the amount from federal form 1040, Schedule 1-A, line 37.”
Vermont
A January 2026 presentation by the Legislature's staff says none of the four flow through to Vermont. We found no Department of Taxes statement on them.
- Not allowed: All four deductions, 2025 and 2026. Source: Vermont Office of Legislative Counsel, presentation to House Ways and Means, Jan. 6, 2026. “The deduction is not an itemized deduction but is made from federal taxable income, which means it does not flow through to Vermont.”
Virginia
Virginia Tax says the state follows federal changes that affect federal adjusted gross income or itemized deductions (2026 Legislative Summary). These four affect neither, and Virginia hasn't named them. A draft of the 2026 budget would have let you subtract 25% of the federal tips, overtime and car loan deductions for 2026, but the enacted budget (Chapter 1, Item 4-14) doesn't include it.
- Not said yet: All four deductions, 2025 and 2026. We found no statement from the state.
West Virginia
We found no statement from the State Tax Department. 2026 bills were found only as introduced.
- Not said yet: All four deductions, 2025 and 2026. We found no statement from the state.
Wisconsin
Wisconsin didn't allow any of the four for 2025. For 2026, tips and overtime bills and a May 2026 special session on them were found, but we couldn't confirm whether anything was enacted: the Legislature's site refused our connection, and the Department of Revenue's pages don't say.
- Not allowed: Tips, overtime, the senior deduction and car loan interest, 2025. Source: Wisconsin Department of Revenue, 2025 tax update slides, Nov. 3, 2025. “Federal OBBB – No tax on tips ▷ WI has not adopted this new federal deduction”
- Not said yet: Tips, overtime, the senior deduction and car loan interest, 2026. Tips and overtime bills were found, but we couldn't confirm whether any was enacted.
States with no tax on wages
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming don't tax wages, so tips and overtime are already free of state income tax there. See states with no income tax.
The federal deductions apply in every state
Whatever your state does, the four deductions work the same on your federal return. Estimate yours with the overtime calculator, the tips calculator, the senior deduction calculator and the car loan interest calculator. For state examples, see no tax on overtime by state.
How we built this
We used primary sources only: state revenue department guidance and forms, statutes, and bills as enacted. Where a revenue department's site blocked us or said nothing, we used official reports from the state's own legislature or auditor, and we name them. We checked every state in November 2026, most recently on November 7, 2026. "Allowed" and "Not allowed" mean the state said so (or, for a few states, that its own law gives a deduction equal to the federal one); "Not said yet" means we found nothing either way, and it is not the same as "taxable". For some states the 2026 answer comes from a statement that covers several years, not from a 2026 form. We will update the table as states act and as 2026 forms come out. You can download the table as a CSV file (state, deduction, year, status, source and source date). The status column uses the table's words: Allowed, Not allowed, Own deduction, Own rule, Not said yet, Not checked, Not confirmed yet and No wage tax.
Common questions
Does my state tax overtime? It depends on the state and the year. For 2026, five states allow the federal overtime deduction (Arizona, Indiana, Iowa, Michigan and North Dakota; Indiana and Michigan through their own laws equal to it), and Alabama and Georgia have their own deduction with a lower cap. 12 states say the federal deduction isn't allowed, and 22 (including D.C.) haven't said yet. Nine states don't tax wages at all. Find your state in the table above.
Which states don't tax tips? Nine states don't tax wages, including tips: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Among states with an income tax, Arizona, Colorado, Hawaii, Indiana, Iowa, Michigan, New York and North Dakota allow the federal tips deduction for 2026 (Indiana, Michigan and New York through their own laws equal to it), and Georgia has its own tips deduction. For 2025, Arizona, Colorado, Idaho, Iowa, Montana, North Dakota and Oregon allowed it. The federal deduction is capped at $25,000 and phases out at higher incomes, so a state that allows it exempts only the part that qualifies.
Does California tax overtime? Yes. California doesn't allow the federal overtime deduction, or any of the four new deductions, for 2025 or 2026. Its tax law follows the federal code as of January 1, 2025, before these deductions existed. The federal deduction still applies on your federal return.
Does Texas tax overtime or tips? No. Texas has no state income tax, so overtime and tips are free of state income tax there. You still pay federal income tax, Social Security and Medicare, and the federal deductions for overtime and tips apply on your federal return.
Do states allow the $6,000 senior deduction? Few say so. For 2025, Arizona, Colorado, Idaho, Iowa, Montana and North Dakota allow it, and 15 (including D.C.) say it isn't allowed. For 2026, only Arizona, Colorado, Iowa and North Dakota allow it so far; most states haven't said.
If my state hasn't said, are my tips or overtime taxable? "Not said yet" means we found no statement from the state either way. It doesn't mean the income is taxable or tax-free. Many states start from federal adjusted gross income, which these deductions don't lower, so check your state's instructions for the year you file. We will update the table as states publish guidance.
Published November 7, 2026. Sources: Internal Revenue Code §224, Internal Revenue Code §225, Internal Revenue Code §151(d)(5)(C) and Internal Revenue Code §163(h)(4); state revenue departments, statutes and enacted bills, linked with their dates in each state's details above. State laws change; check your state's instructions for the year you file.