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Does Massachusetts Tax Tips and Overtime? (2026)

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

Taxed by the state. The Department of Revenue’s conformity chart (TIR 26-4) marks both “No tax on tips” and “No tax on overtime” as not adopted.

Tips

Taxed: Massachusetts doesn’t adopt the tips deduction

Overtime

Taxed: Massachusetts doesn’t adopt the overtime deduction

Checked against the official source on 2026-11-11. State rules can change; confirm with the Massachusetts 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 Massachusetts tax tips in 2026?

Taxed: Massachusetts doesn’t adopt the tips deduction. The federal deduction still lowers your federal income tax.

Does Massachusetts tax overtime in 2026?

Taxed: Massachusetts doesn’t adopt 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.