No Tax on Tips and Overtime by State (2026)
The federal deductions don’t automatically lower your state tax. Here’s how each state handles them for 2026. We list a state only after reading its official source.
- No income tax 9
- Follow or own deduction 6
- Taxed 4
- Not confirmed 32
| State | Status | Tips | Overtime |
|---|---|---|---|
| Alabama | Own state deduction | No state tips deduction in this law | Deduct the overtime premium, up to $1,000 per taxpayer (2026–2028) |
| Alaska | No state income tax | No state income tax on wages or tips | No state income tax on wages or overtime |
| Arizona | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Arkansas | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| California | Taxed by the state | Taxed: California doesn’t conform | Taxed: California doesn’t conform |
| Colorado | Partly follows | Follows federal: no add-back for qualified tips | Taxed: the federal overtime deduction must be added back (2026 and later) |
| Connecticut | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Delaware | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| District of Columbia | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Florida | No state income tax | No state income tax on wages or tips | No state income tax on wages or overtime |
| Georgia | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Hawaii | Partly follows | Follows federal tips deduction (tax years after 2025) | Taxed: Hawaii doesn’t conform to the overtime deduction |
| Idaho | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Illinois | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Indiana | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Iowa | Follows federal | Follows federal | Follows federal |
| Kansas | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Kentucky | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Louisiana | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Maine | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Maryland | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Massachusetts | Taxed by the state | Taxed: Massachusetts doesn’t adopt the tips deduction | Taxed: Massachusetts doesn’t adopt the overtime deduction |
| Michigan | Own state deduction | State deduction mirroring federal (2026–2028) | State deduction mirroring federal (2026–2028) |
| Minnesota | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Mississippi | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Missouri | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Montana | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Nebraska | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Nevada | No state income tax | No state income tax on wages or tips | No state income tax on wages or overtime |
| New Hampshire | No state income tax | No state income tax on wages or tips | No state income tax on wages or overtime |
| New Jersey | Taxed by the state | Taxed: no effect on NJ-1040 | Taxed: no effect on NJ-1040 |
| New Mexico | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| New York | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| North Carolina | Taxed by the state | Taxed (confirmed for 2025 returns) | Taxed (confirmed for 2025 returns) |
| North Dakota | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Ohio | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Oklahoma | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Oregon | Follows federal | Follows federal (subtraction) | Follows federal (subtraction) |
| Pennsylvania | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Rhode Island | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| South Carolina | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| South Dakota | No state income tax | No state income tax on wages or tips | No state income tax on wages or overtime |
| Tennessee | No state income tax | No state income tax on wages or tips | No state income tax on wages or overtime |
| Texas | No state income tax | No state income tax on wages or tips | No state income tax on wages or overtime |
| Utah | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Vermont | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Virginia | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Washington | No state income tax | No state income tax on wages or tips | No state income tax on wages or overtime |
| West Virginia | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Wisconsin | Not confirmed yet | Not confirmed yet | Not confirmed yet |
| Wyoming | No state income tax | No state income tax on wages or tips | No state income tax on wages or overtime |
Each linked state page cites the official state source and the date we checked it. “Not confirmed yet” means we haven’t verified an official source; check your state tax agency.
Frequently asked questions
Does the federal deduction lower my state tax?
Not automatically. The federal deductions are taken after AGI, and most states start from AGI or use their own rules. A state has to follow federal taxable income or pass its own law.
Why do some states say “not confirmed yet”?
We only list a state’s rule after reading its official revenue department or legislative source. Until then, check your state’s tax agency.
Do states without an income tax tax tips?
No. Nine states don’t tax wages at all, so tips and overtime are free of state income tax there.
Related tools and guides
- No tax on tips and overtimeBoth deductions side by side, with a combined calculator.
- No tax on overtime calculatorW-2 code TT or an hours estimate, cap, phase-out and tax saved.
- No tax on tips calculatorW-2 code TP, box 14b and 1099 tips, with the net-profit limit.
- 2026 numbersCaps, phase-out, standard deduction and brackets, with sources.