---
title: "Does Georgia tax tips?"
description: "Georgia doesn’t follow the federal tips deduction, but up to $1,750 of tipped wages can be excluded from Georgia taxable net income."
url: https://www.tipmaxapp.com/us/answers/georgia/state-tax-on-tips
language: en
publisher: TipMax (Entermaurs Incorporated)
date_published: 2026-09-23
last_verified: 2026-09-23
---

# Are my tips taxed by Georgia?

**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 rules in Georgia

| Rule | What it says |
| --- | --- |
| 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, https://dor.georgia.gov/taxes/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

- [Georgia Department of Revenue: important tax updates](https://dor.georgia.gov/taxes/important-tax-updates)

## Last verified

September 23, 2026. Checked the agency pages linked above.

## About TipMax

Georgia excludes only the first $1,750 of tipped wages, so a running yearly tip total shows when you pass that line.

TipMax is an iPhone app for servers and bartenders that tracks tips and tip-outs and turns a restaurant menu into study flashcards.

Download TipMax free: https://apps.apple.com/us/app/tipmax-study-track-earn/id6744850146

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TipMax Answers explains public IRS guidance in plain English for tipped workers. It is **not tax, legal, or accounting advice**. Rules can change. Confirm figures on IRS.gov and with a qualified tax professional before you file. TipMax the app helps you track tips and true hourly pay; it does not file your taxes.