In Massachusetts, legislation is in the works to end the taxes on overtime and tip, with language that is slightly different than what passed nationally. However, what's in the Big Beautiful Bill, which Trump has toured as a centerpiece of his second-term agenda, will likely usher it into effect sooner.

Note: Now that the No Tax on Tips measure has been signed into law, the new tax deduction for cash tips takes effect for the 2025 tax year. That means eligible workers could claim the deduction when they file their taxes in early 2026 for income earned in 2025. Despite the excitement over this change, there are some things the OBBBA doesn’t cover.