A major tax package signed on July 4 is set to deliver new deductions to millions of Americans, but residents in several states and Washington, D.C., won’t see the same savings on their state returns.

Why It Matters

The One Big Beautiful Bill Act (OBBBA) introduced wide-ranging tax changes for seniors, service workers, car buyers and others.

Among its major provisions are an expanded deduction for older Americans; a rule allowing service workers earning under $150,000 to exclude up to $25,000 in tip income from federal taxes; and a new exemption from overtime pay for up to 250 hours. Car buyers earning less than $100,000 can also deduct interest on auto loans up to $10,000.

But state tax systems do not automatically match federal rules . While many start with the Internal Revenue C

See Full Page