MA
Does Massachusetts tax tips and overtime?
The federal deduction and the Massachusetts deduction are separate questions. Here is where Massachusetts actually lands, and why.
How Massachusetts builds its tax base
Massachusetts calculates its own tax base rather than importing a federal figure, so the federal deduction never enters the computation at all. Any relief here is a state provision in its own right, with its own rules and limits.
Tips in Massachusetts
Still taxedMassachusetts builds its own base — G.L. c. 62 §1(c) determines Massachusetts gross income from the Code as in effect January 1, 2024 (with current-Code conformity only for trade-or-business expense deductions and certain specified sections), so post-2024 federal personal deductions do not carry over; DOR TIR 26-4 (June 23, 2026) answers "No" for Massachusetts income tax conformity to Act Sec. 70201, "No tax on tips."
Source: Massachusetts DOR, TIR 26-4: Massachusetts Conformity to Certain Provisions in Public Law No. 119-21 (June 23, 2026) · last reviewed
Overtime in Massachusetts
Still taxedTIR 26-4's conformity chart likewise answers "No" for Act Sec. 70202, "No tax on overtime," for the Massachusetts personal income tax, so a taxpayer who claims the §225 deduction federally gets no corresponding Massachusetts benefit and the overtime premium remains in Massachusetts Part B income.
Source: Massachusetts DOR, TIR 26-4 conformity chart (Sec. 70202. No tax on overtime — Massachusetts Income Tax Conformity: No) · last reviewed
Whatever your state does, your payroll taxes do not change
Both deductions reduce income tax only. Social Security and Medicare are still charged on the same wages, in every state.