Does Georgia follow the federal no-tax-on-tips and overtime deductions?
DOES NOT CONFORM
Georgia does not follow the federal deductions for state income tax. You can still claim the tips and overtime deductions on your federal return (Schedule 1-A) — they simply do not reduce your Georgia state tax. Do not assume your state return treats this income the way your federal return does.
Verified against the official state source below — last verified October 26, 2026
| Deduction | Georgia position |
|---|---|
| Federal tips deduction (IRC §224) | Does not conform |
| Federal overtime deduction (IRC §225) | Does not conform |
What the state itself says
"Section 224, Section 225, … shall be treated as if they were not in effect."
- Official source
- House Bill 1199 (Act 375), enrolled text amending O.C.G.A. §48-1-2(14), signed March 20, 2026
- Tax years covered
- Taxable years beginning on or after January 1, 2025 (decouples 2025–2028).
Georgia uses fixed-date conformity; HB 1199 moved the date to January 1, 2026 but expressly carved §§224/225 (and §§1062, 163(h)(4)(E), 168(n), 174/174A) out of the IRC as adopted for state purposes. Warning: the Act's caption mentions "exemption of income taxes on overtime and tips," but the operative text does the opposite — it decouples. No separate GA DOR guidance page on HB 1199 was found; the enrolled statute is the deciding source.
Your federal deduction is separate
Whatever your state does, the federal deductions run on their own rules: check your W-2 codes with the W-2 Code Checker, estimate with the Tips Calculator and Overtime Calculator, and see the glossary for any term. All state positions: the state-by-state index.
State position verified October 26, 2026 from the official source above. State guidance changes; confirm on the source before filing. This page is general information, not tax advice.