TX
Does Texas tax tips and overtime?
Texas has no income tax on wages, so the federal deductions are the only ones that matter to you.
How Texas builds its tax base
Texas has no broad individual income tax on wages, so there is no state tax for either deduction to reduce.
Tips in Texas
No income taxTexas has no broad individual income tax on wages, so there is no state tax on tips for the federal deduction to reduce.
Source: State has no broad individual income tax on wages · last reviewed
Overtime in Texas
No income taxTexas has no broad individual income tax on wages, so there is no state tax on overtime pay for the federal deduction to reduce.
Source: State has no broad individual income tax on wages · 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.