Does Ohio follow the federal no-tax-on-tips and overtime deductions?
DOES NOT CONFORM
Ohio 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 Ohio 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 | Ohio position |
|---|---|
| Federal tips deduction (IRC §224) | Does not conform |
| Federal overtime deduction (IRC §225) | Does not conform |
What the state itself says
"Notable changes in the OBBBA that do not affect Ohio law include the deductions for tips and overtime compensation."
- Official source
- Ohio Legislative Service Commission, Final Analysis, S.B. 9, 136th General Assembly (updated April 9, 2026)
- Tax years covered
- S.B. 9 (effective March 5, 2026) incorporates IRC changes taking effect after March 7, 2025 — covering OBBBA as it applies to 2025 returns onward.
Ohio has no automatic rolling conformity — the General Assembly incorporates IRC changes by act (here, S.B. 9) — and starts from federal AGI; the LSC analysis adds that these deductions are "below-the-line," meaning "they do not flow through to Ohio taxable income." No separate Ohio tips/overtime deduction was enacted.
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.