Does your state follow the No Tax on Tips deduction?
Congress passed the federal deduction. Your state legislature decides if your state follows along. Most haven't. Here's where every U.S. state stands as of June 2026.
9
No state income tax
0
State conforms
5
Pending legislation
37
State still taxes tips
States with no income tax on wages
The federal No Tax on Tips deduction makes no difference here — your tips were never taxed at the state level to begin with.
- Alaska (AK)
- Florida (FL)
- Nevada (NV)
- New Hampshire (NH)
- South Dakota (SD)
- Tennessee (TN)
- Texas (TX)
- Washington (WA)
- Wyoming (WY)
States with conformity legislation pending
Bills introduced or active debate. Status can change inside the same tax year — track your tips so you're ready either way.
- Georgia (GA)
- Iowa (IA)
- Louisiana (LA)
- Mississippi (MS)
- Oklahoma (OK)
States that still tax tip income
As of June 2026, the following states have an income tax and have not adopted federal conformity for the §224 deduction. Your tips remain fully taxable at the state level even if you claim the federal break.
- Alabama (AL)
- Arizona (AZ)
- Arkansas (AR)
- California (CA)
- Colorado (CO)
- Connecticut (CT)
- Delaware (DE)
- District of Columbia (DC)
- Hawaii (HI)
- Idaho (ID)
- Illinois (IL)
- Indiana (IN)
- Kansas (KS)
- Kentucky (KY)
- Maine (ME)
- Maryland (MD)
- Massachusetts (MA)
- Michigan (MI)
- Minnesota (MN)
- Missouri (MO)
- Montana (MT)
- Nebraska (NE)
- New Jersey (NJ)
- New Mexico (NM)
- New York (NY)
- North Carolina (NC)
- North Dakota (ND)
- Ohio (OH)
- Oregon (OR)
- Pennsylvania (PA)
- Rhode Island (RI)
- South Carolina (SC)
- Utah (UT)
- Vermont (VT)
- Virginia (VA)
- West Virginia (WV)
- Wisconsin (WI)
All 50 states + DC
The full state-by-state list.
| State | Status |
|---|---|
| Alabama (AL) | State taxes tips |
| Alaska (AK) | No state income tax |
| Arizona (AZ) | State taxes tips |
| Arkansas (AR) | State taxes tips |
| California (CA) | State taxes tips |
| Colorado (CO) | State taxes tips |
| Connecticut (CT) | State taxes tips |
| Delaware (DE) | State taxes tips |
| District of Columbia (DC) | State taxes tips |
| Florida (FL) | No state income tax |
| Georgia (GA) | Pending legislation |
| Hawaii (HI) | State taxes tips |
| Idaho (ID) | State taxes tips |
| Illinois (IL) | State taxes tips |
| Indiana (IN) | State taxes tips |
| Iowa (IA) | Pending legislation |
| Kansas (KS) | State taxes tips |
| Kentucky (KY) | State taxes tips |
| Louisiana (LA) | Pending legislation |
| Maine (ME) | State taxes tips |
| Maryland (MD) | State taxes tips |
| Massachusetts (MA) | State taxes tips |
| Michigan (MI) | State taxes tips |
| Minnesota (MN) | State taxes tips |
| Mississippi (MS) | Pending legislation |
| Missouri (MO) | State taxes tips |
| Montana (MT) | State taxes tips |
| Nebraska (NE) | State taxes tips |
| Nevada (NV) | No state income tax |
| New Hampshire (NH) | No state income tax |
| New Jersey (NJ) | State taxes tips |
| New Mexico (NM) | State taxes tips |
| New York (NY) | State taxes tips |
| North Carolina (NC) | State taxes tips |
| North Dakota (ND) | State taxes tips |
| Ohio (OH) | State taxes tips |
| Oklahoma (OK) | Pending legislation |
| Oregon (OR) | State taxes tips |
| Pennsylvania (PA) | State taxes tips |
| Rhode Island (RI) | State taxes tips |
| South Carolina (SC) | State taxes tips |
| South Dakota (SD) | No state income tax |
| Tennessee (TN) | No state income tax |
| Texas (TX) | No state income tax |
| Utah (UT) | State taxes tips |
| Vermont (VT) | State taxes tips |
| Virginia (VA) | State taxes tips |
| Washington (WA) | No state income tax |
| West Virginia (WV) | State taxes tips |
| Wisconsin (WI) | State taxes tips |
| Wyoming (WY) | No state income tax |
Status reflects publicly available state legislation and revenue-department guidance as of June 2026. Conformity rules change frequently — verify with your state revenue department before filing.
Questions
About state conformity.
Do all states follow the federal No Tax on Tips deduction?
No. The federal deduction under §224 only reduces federal income tax. Each state decides separately whether to follow the federal rule. Most have not, so your tips may still be fully taxed at the state level.
Which states have no income tax on tips at all?
Nine states have no wage income tax, so the federal deduction creates no state gap: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you live and work in one of these, your tips are already untaxed at the state level.
What if my state is still considering conformity?
Track your tips anyway. State legislation can change at any time and conformity rules are often retroactive within the same tax year. A clean record means you can claim whatever your state ultimately allows.
I live in one state but work in another — which state taxes my tips?
Generally the state where the tips were earned. Cross-border workers (e.g., a server who lives in NJ but works in NY) should check both states's rules and consider a state tax professional. Your daily record needs the location of each shift.
Either way: track your tips
Federal or state, the records are the same.
Qualified Tips logs each shift the moment it ends. If your state catches up later, you'll already have clean numbers ready to go.