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Does Michigan Tax Tips and Overtime? (2026)

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

Own state deduction. Michigan created its own deductions for 2026, 2027 and 2028 that mirror what you deduct on your federal return. They aren’t available for 2025. Nonresidents can only deduct tips and overtime from work done in Michigan.

Tips

State deduction mirroring federal (2026–2028)

Overtime

State deduction mirroring federal (2026–2028)

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

State deduction mirroring federal (2026–2028). The federal deduction still lowers your federal income tax.

Does Michigan tax overtime in 2026?

State deduction mirroring federal (2026–2028).

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.