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Index/Topics/US State Tax Conformity 2026

US State Tax Conformity 2026

The decision of US states to conform to federal tax deductions for qualified tips and overtime, and the potential revenue impact.

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Jan 27, 2026
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Which states have formally decoupled from the federal tip and overtime deductions and what revenue impact did analysts estimate for each?

A small handful of states have already taken explicit positions on whether to “conform” to the for qualified tips and qualified overtime introduced in the One Big Beautiful Bill; most states remain un...

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