WattFlow
Tax tools

Does Hawaii Tax Tips and Overtime? (2026)

Tax year 2026 · Last updated · Maintained by the WattFlow team

Partly follows. Act 35 (2026) conforms Hawaii to the federal tips deduction (IRC 224) for tax years beginning after December 31, 2025, but not to the overtime deduction (IRC 225).

Tips

Follows federal tips deduction (tax years after 2025)

Overtime

Taxed: Hawaii doesn’t conform to the overtime deduction

Checked against the official source on 2026-11-11. State rules can change; confirm with the Hawaii tax agency before you file.

Your federal deduction

The federal deductions apply in every state: up to $25,000 of tips and up to $12,500 of overtime ($25,000 joint). Use the calculator to see your federal savings.

Federal tips + overtime calculator

Private: runs in your browser
Form 1040, line 11. Include your overtime and tips.
Find the letters TT in box 12. Add up all your W-2s.
Must be on the IRS tipped jobs list.
Gig work or 1099 tips? DoorDash, Uber, self-employed
Schedule C net profit. You can’t deduct more than this.
More options Tax year, itemizing, special cases
Leave blank if you take the standard deduction.

Estimate of federal income tax only. Not tax advice.

Frequently asked questions

Does Hawaii tax tips in 2026?

Follows federal tips deduction (tax years after 2025). The federal deduction still lowers your federal income tax.

Does Hawaii tax overtime in 2026?

Taxed: Hawaii doesn’t conform to the overtime deduction.

Does the federal deduction still apply?

Yes. Wherever you live, you can claim the federal tips and overtime deductions on Schedule 1-A if you qualify.