Are my tips taxed by Georgia?
GeorgiaVerified September 23, 2026
The short answer
Yes, but part can be excluded. The Georgia Department of Revenue says the state didn’t adopt the new federal income exemptions for tips and overtime. Instead, Georgia lets you exclude up to $1,750 of tipped wages from taxable net income. A separate $1,750 applies to overtime. Tips above that amount are taxed by Georgia even if they’re deductible on your federal return.
The rule in Georgia
| Federal tips deduction | Georgia did not conform to the federal exemption for tipped wages. |
|---|---|
| Georgia’s own exclusion | Up to $1,750 of tipped wages may be exempted from taxable net income. |
| Overtime | A separate exclusion of up to $1,750 applies to overtime. |
“However, up to $1,750 of each may be exempted from the calculation of taxable net income.” (Georgia Department of Revenue: important tax updates)
What’s different in Georgia
Georgia chose its own carve-out rather than copying the federal deduction for qualified tips. The two work separately: the federal return has its own rules for which tips qualify, and Georgia simply lets you exclude a fixed dollar amount of tipped wages from state taxable net income.
Once your tipped wages for the year pass $1,750, every extra dollar is taxed by Georgia, even when the federal return deducts it. The exclusion is per category, so overtime gets its own $1,750 on top. Keep your yearly tip total handy, because the state figure and the federal one will rarely match for a full-time server.
Official sources
Last verified
. Checked the agency pages linked above.