State taxes on overtime
The federal overtime deduction lowers your federal income tax. Your state is a separate question, and the answer differs by state.
Why the answer varies
States that tax income write their own rules. Some begin from your federal adjusted gross income, some from federal taxable income, and some from neither. A federal deduction may or may not carry through, and a state can change its position from one year to the next. We do not state any state’s position here, because a wrong guess costs you money.
Where to check
These are the tax agencies of states with many hourly workers. Open the one for your state and look for the current-year return instructions or a page on the new federal deductions.
- California tax agency
- Florida tax agency
- Georgia tax agency
- Illinois tax agency
- Massachusetts tax agency
- Michigan tax agency
- New Jersey tax agency
- New York tax agency
- North Carolina tax agency
- Ohio tax agency
- Pennsylvania tax agency
- Texas tax agency
- Virginia tax agency
- Washington tax agency
Not on the list? Search for “your state name” and “department of revenue”. Then run the federal calculator for the federal part.
Sources
- IRS: What to know about the No Tax on Overtime deduction
- IRS FS-2026-13: Questions and answers about the qualified overtime compensation deduction
Last checked . Figures follow the IRS pages above; the law can change, so confirm on irs.gov before you file. This site gives estimates, not tax advice.
Questions
Does my state tax overtime?
Most states with an income tax start from federal figures but make their own rules. Ask your state tax agency, or read its instructions for your return.
Does the federal deduction lower my state tax?
Not automatically. Whether a state accepts the deduction depends on how that state’s law links to federal tax law. This site makes no claim about any state.
Does the federal deduction change state payroll tax?
No. It is a federal income tax deduction on Form 1040.
Where do I look?
Start with your state tax agency’s website or its current-year return instructions. The links below go to the agency home pages.