Does Mississippi follow the federal no-tax-on-tips and overtime deductions?
DOES NOT CONFORM
Mississippi 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 Mississippi 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 | Mississippi position |
|---|---|
| Federal tips deduction (IRC §224) | Does not conform |
| Federal overtime deduction (IRC §225) | Does not conform |
What the state itself says
- Official source
- Mississippi Department of Revenue, Form 80-100 (Rev. 12/25), "2025 Income Tax Instructions"
- Tax years covered
- 2025.
Mississippi uses its own statutory gross-income/AGI definitions (Miss. Code §27-7-5; DOR regulation defines gross income as "all income from whatever source derived"), not federal AGI or federal taxable income; the official 2025 booklet taxes tips in full as wages, contains no "overtime" and no tips/overtime adjustment, and its only OBBBA reference concerns the SALT cap. No DOR OBBBA guidance page was found. Basis: official form/instruction structure. (Pointer only: HB 1710 (2025), which would have excluded tips, reportedly died in committee.)
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.