Does Massachusetts follow the federal no-tax-on-tips and overtime deductions?
DOES NOT CONFORM
Massachusetts 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 Massachusetts 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 | Massachusetts position |
|---|---|
| Federal tips deduction (IRC §224) | Does not conform |
| Federal overtime deduction (IRC §225) | Does not conform |
What the state itself says
"Massachusetts does not allow the federal deduction of qualified tips income." / "Massachusetts does not allow the federal deduction for qualified overtime pay."
- Official source
- Massachusetts DOR, "Differences Between MA and Federal Tax Law for Personal Income" (Mass.gov, updated per TIR 26-4)
- Tax years covered
- 2025 (page applies to 2024 tax years and thereafter).
Massachusetts personal income tax conforms to the IRC as in effect January 1, 2024 (G.L. c. 62, §1(c)) — before OBBBA. DOR issued OBBBA-specific guidance (TIR 26-4, June 23, 2026) and lists both deductions under "Federal deductions disallowed for Massachusetts purposes"; §§224/225 are not among the provisions conformed on a current-Code basis.
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.