00:00President Trump is fond of pointing out how his one big beautiful bill eliminated federal taxes
00:05on things like tips, overtime pay, and provided additional tax relief for many seniors. But a New
00:12York Post analysis found millions of Americans are not seeing the full benefit because many states
00:18have decided to keep taxing that income. 31 states and the District of Columbia still tax tips,
00:2430 states and D.C. continue to tax overtime pay, and eight states still tax Social Security benefits.
00:32The states keeping the most taxes are in places like Connecticut, Minnesota, New Mexico, Rhode Island,
00:38and Vermont. Blue states. That impact can be significant. In Minnesota, a server who earns
00:45about $25,000 a year in tips could still owe an estimated $1,700 in state taxes, even though those
00:54same tips are now tax-free at the federal level. By comparison, a similar worker in a state like
00:59Idaho, which adopted the federal tax break, could keep about $1,300 more of their tip income. The
01:07same patchwork applies to retirees and hourly workers. Whether you see tax savings now depends
01:13largely on your zip code. The analysis also found that 29 states have opted into the law's new
01:19education freedom tax credit program, while others have chosen to sit it out, meaning residents in
01:25those states could miss out on the program's benefits as well.
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