Federal conformity varies — some states automatically adopt IRS changes, others decouple. Find your state's status on both overtime and tips deductions.
No state income tax at all. The federal deduction is all that matters — you keep 100% of your savings.
The state automatically adopts federal changes (rolling or static conformity). You get both the federal AND state deduction.
The state legislature is still deciding whether to adopt OBBBA changes. Could go either way — check back for updates.
The state has explicitly chosen NOT to conform to OBBBA. You still get the federal deduction, but state taxes are unchanged.
Calculate your exact federal savings on overtime pay under OBBBA. Covers state conformity automatically.
Check if your occupation qualifies and calculate your tips deduction. All 68 IRS-approved occupations covered.
Understanding how state taxes interact with the federal OBBBA deductions
Yes, absolutely. State conformity only affects your state income tax. Your federal income tax savings from OBBBA are unaffected regardless of what your state does. You'll simply owe state tax on the income as you normally would.
Rolling conformity states automatically adopt federal tax changes as they happen — so they typically conform to OBBBA without any state legislation needed. Static conformity states are locked to a specific year of the federal tax code and must actively pass legislation to update.
States like Illinois, Maine, and DC have decoupled because conforming would reduce their state tax revenue. These states made a deliberate legislative or administrative decision not to adopt the federal deduction for state tax purposes.
We monitor state revenue department announcements, legislative updates, and IRS guidance continuously. This page is updated as states make official conformity decisions. Most "monitoring" states are expected to finalize their positions before the April 15, 2026 filing deadline.