AMERICANALMANAC (Sadie Smith) - Democrat-led states still tax tips, overtime, and Social Security a year after Trump signed relief into law
A year after President Trump's "One Big Beautiful Bill" eliminated federal taxes on tips, overtime, and part of Social Security income, more than 30 Democrat-led states are refusing to follow suit, leaving millions of workers and retirees with higher tax bills than their neighbors in states that conformed. The gap between federal relief and state-level […] The post Democrat-led states still tax tips, overtime, and Social Security a year after Trump signed relief into law appeared first on American Almanac .
A year after President Trump's "One Big Beautiful Bill" eliminated federal taxes on tips, overtime, and part of Social Security income, more than 30 Democrat-led states are refusing to follow suit, leaving millions of workers and retirees with higher tax bills than their neighbors in states that conformed. The gap between federal relief and state-level holdouts is now stark enough to measure in dollars. A server in Idaho who earns $25,000 a year in tips keeps an extra $1,325 because the state matched the federal exemption. A server earning the same tips in Minnesota hands roughly $1,700 of that income to the state, taxed at a 6.8% rate the legislature never bothered to adjust. Same job. Same hours. Different state capitol, different…Open