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.

The White House has said workers benefiting from the deduction could see up to $2,000 in annual federal tax savings.

With the passage of President Donald Trump's massive tax and policy bill, Americans will see a change to how their overtime pay is taxed.