Does Maine follow the federal no-tax-on-tips and overtime deductions?
DOES NOT CONFORM
Maine 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 Maine 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 | Maine position |
|---|---|
| Federal tips deduction (IRC §224) | Does not conform |
| Federal overtime deduction (IRC §225) | Does not conform |
What the state itself says
"Under current law, Maine conforms to the Internal Revenue Code (the "Code") as of December 31, 2024"
- Official source
- Maine Revenue Services, "2025 Income Tax — IMPORTANT UPDATE" (front matter to the 2025 Form 1040ME/1120ME instructions)
- Tax years covered
- 2025 (the FY2026–27 supplemental budget, Part K / LD 2212, enacted April 2026, later updated the conformity date to Dec. 31, 2025 for TYs beginning on/after Jan. 1, 2025 — outcome for tips/overtime unchanged).
Fixed-date conformity + federal-AGI starting point. The same MRS update lists the only OBBBA items Maine adopted by the Governor's directive (qualified disaster losses, qualified farmland sales, §179, business interest, limited R&D) — tips and overtime are not included, and Part K's only new individual subtraction is for non-itemizer charitable contributions.
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.