Under the 2025 OBBBA, qualifying overtime pay gets a federal income-tax deduction — the 'half' premium of time-and-a-half, not your whole overtime check, and within an annual cap.
It's a deduction, not an exemption: payroll still withholds, and you claim the benefit at filing, so the cash-flow timing differs from a true tax-free paycheck.
Whether tips or overtime give you the bigger break depends on your mix of hours and income, which is exactly the kind of comparison worth running before you change shifts.