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State tax exemptions

Some states, like Michigan, have enacted their own exemptions from state income tax on tips.

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Jan 27, 2026
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Which states have passed legislation in 2026 to adopt the federal overtime and tip deductions?

——has moved through the legislative process to adopt the new federal deductions for tips and overtime wages effective in 2026; most other states are either decoupling, waiting for 2026 sessions, or re...