No Tax on Tips Calculator for Georgia (2026)
Calculate how much Georgia workers save now that tips are deductible from federal taxable income (caps and income limits apply) under the OBBBA.
Your Information
Your Annual Tax Savings in Georgia
Tips Tax Deduction in Georgia
Under the One Big Beautiful Bill Act (OBBBA), workers in Georgia who earn tips can deduct 100% of their tip income from federal income tax for tax years 2025 through 2028.
Georgia Minimum Wage for Tipped Workers
The minimum wage in Georgia is $7.25/hour. Tipped workers may be paid a lower base wage of $2.13/hour, with tips expected to make up the difference. This makes the federal tip tax deduction especially valuable for Georgia workers.
Top Tipped Industries in Georgia
- Restaurant servers
- Bartenders
- Hotel staff
- Delivery drivers
Does Georgia Tax Tips? (State Conformity)
State Income Tax Applies to Tips
Georgia has a state income tax rate of 5.5%. While the OBBBA exempts tips from federal income tax, Georgia may still tax tip income at the state level. Check with a local tax professional for details.
How the No Tax on Tips Law Works
What Qualifies
- Cash tips received directly from customers
- Credit/debit card tips
- Tips from tip pools or tip sharing
- Service charges distributed as tips
What Doesn't Change
- FICA taxes still apply: You still pay 6.2% Social Security + 1.45% Medicare on tip income
- Tips must still be reported: Report all tips to your employer and on your tax return
- Annual cap: Deduction limited to $25,000 per year in tip income
- Income limit: The deduction applies to workers earning less than $150,000/year (single) or $300,000 (married filing jointly)
Overtime Tax Deduction in Georgia (2026)
The same OBBBA Schedule 1-A rules apply nationwide: only the FLSA overtime premium (the half of time-and-a-half) is deductible, up to $12,500 ($25,000 joint), with MAGI phase-outs. Georgia state income tax may still apply to overtime wages even when the federal premium deduction is available.
Use the free Overtime Tax Calculator to estimate federal savings for Georgia workers — including common searches like “georgia overtime tax calculator.”
Federal Calculators
Compare with the federal-level tools: Tip Tax Savings (Federal) | Overtime Tax Calculator (Federal)