States / Georgia
GA state income tax · checked October 14, 2026
Does Georgia tax tips and overtime?
Georgia doesn’t follow the federal deductions, but from 2026 through 2028 it excludes up to $1,750 of cash tips and up to $1,750 of overtime.
| Georgia return | Tips | Overtime |
|---|---|---|
| 2025 | Taxed | Taxed |
| 2026 | Own smaller break | Own smaller break |
The details
Georgia decoupled from the federal tips and overtime deductions, so nothing is subtracted on a 2025 Georgia return.
HB 463, signed May 11, 2026, created Georgia’s own exclusions for tax years 2026 through 2028: up to $1,750 of cash tips received in a Treasury tipped occupation, and up to $1,750 of qualified overtime for full-time hourly employees.
The federal deductions apply either way. See who qualifies for no tax on tips, how the overtime deduction works, and where both go on Schedule 1-A.
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Questions
Does Georgia tax tips in 2026?
For 2026, Georgia gives its own, smaller break on tips instead of following the federal deduction.
Does Georgia tax overtime in 2026?
For 2026, Georgia gives its own, smaller break on overtime instead of following the federal deduction.
What about my 2025 Georgia return?
For 2025, Georgia taxes tips in full. For 2025, Georgia taxes overtime in full.
Does the federal deduction still apply?
Yes. Whatever your state does, you can still claim the federal deductions on Schedule 1-A if you qualify: up to $25,000 of qualified tips per return and up to $12,500 of qualified overtime ($25,000 joint), phasing down above $150,000 of MAGI ($300,000 joint).