States / Texas
TX state income tax · checked October 14, 2026
Does Texas tax tips and overtime?
Texas has no state income tax on wages, so tips and overtime aren’t taxed by the state at all.
| Texas return | Tips | Overtime |
|---|---|---|
| 2025 | No wage tax | No wage tax |
| 2026 | No wage tax | No wage tax |
The details
There’s no Texas return to adjust. The federal deductions on Schedule 1-A still lower your federal income tax, and social security and Medicare tax still apply to tips and overtime.
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.
States with the same 2026 treatment
All 50 states and D.C. · Tennessee · Utah
Questions
Does Texas tax tips in 2026?
Texas has no wage income tax, so tips aren’t taxed by the state in 2026.
Does Texas tax overtime in 2026?
Texas has no wage income tax, so overtime isn’t taxed by the state in 2026.
What about my 2025 Texas return?
Texas has no wage income tax, so tips aren’t taxed by the state in 2025. Texas has no wage income tax, so overtime isn’t taxed by the state in 2025.
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).