Does Tennessee follow the federal no-tax-on-tips and overtime deductions?
NO STATE INCOME TAX
Tennessee has no state income tax, so there is no state deduction to claim or lose — the federal tips and overtime deductions on Schedule 1-A are unaffected and work exactly as the federal rules describe.
Verified against the official state source below — last verified October 26, 2026
| Deduction | Tennessee position |
|---|---|
| Federal tips deduction (IRC §224) | — |
| Federal overtime deduction (IRC §225) | — |
What the state itself says
"Tennessee has no state income tax on earned income and therefore has no withholding requirements."
- Official source
- Tennessee Department of Revenue, "GEN-34 – Income Tax Withholding" (official DOR support page)
- Tax years covered
- All — the Hall tax (interest/dividends only) was fully repealed January 1, 2021; Tennessee never taxed earned income.
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.