Does Louisiana follow the federal no-tax-on-tips and overtime deductions?
DOES NOT CONFORM
Louisiana 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 Louisiana 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 | Louisiana position |
|---|---|
| Federal tips deduction (IRC §224) | Does not conform |
| Federal overtime deduction (IRC §225) | Does not conform |
What the state itself says
- Official source
- Louisiana Department of Revenue, "2025 IT-540 Instructions"
- Tax years covered
- 2025.
Louisiana starts from federal AGI and then allows only its own standard deduction plus narrow state items — no line anywhere in the official 2025 booklet picks up Schedule 1-A deductions, and "overtime" never appears. (Pointer only: HB 414 (2025), which would have created state deductions effective 2026, never advanced out of committee per non-official trackers.) Basis: official form/instruction structure.
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.