Does my state also stop taxing tips?

The short answer

Not automatically. The federal qualified tips deduction (IRC §224, Schedule 1-A Part II) is a federal income tax rule. Whether your state follows it depends on that state’s own tax law. The table below shows a state’s position only where its tax agency has published one. Otherwise, assume tips may still face state income tax until you confirm with your state DOR or a tax pro. FICA generally still applies.

Example math

Federal qualified tips deduction: $12,000. Illustrative federal marginal rate 22% → ≈ $2,640 federal income-tax savings (illustrative rate; enter your own marginal rate).

State column: unknown without your state’s rules. It could be $0 extra benefit, a partial conformity amount, or no state break at all.

Not tax advice. Do not read a federal calculator result as a state refund.

Check your estimate

The tool is federal only and shows a static state caveat. It will not rank states.

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Plain English

State by state

9 of 51 states and DC have a position we’ve read on the state tax agency’s own site. Every other row says “Not confirmed yet”: that means we haven’t confirmed it, not that the state taxes or doesn’t tax your tips.

StateStatusWhat the state saysChecked
AlabamaNot confirmed yet——
AlaskaNot confirmed yet——
ArizonaNot confirmed yet——
ArkansasNot confirmed yet——
CaliforniaDoesn’t follow the federal deduction“No, with respect to the deduction on tips provisions. Yes, with respect to the information return provisions.”A bill that would adopt the deduction for 2026–2028 (AB 1550) was pending; the FTB page doesn’t show it enacted.Sep 23, 2026
ColoradoNot confirmed yet——
ConnecticutNot confirmed yet——
DelawareNot confirmed yet——
District of ColumbiaNot confirmed yet——
FloridaNo state income tax on wages“Florida does not impose a personal income tax, so there are no filing requirements.”Sep 23, 2026
GeorgiaHas its own, smaller tip exclusion“However, up to $1,750 of each may be exempted from the calculation of taxable net income.”Sep 23, 2026
HawaiiNot confirmed yet——
IdahoNot confirmed yet——
IllinoisNothing published yetThe Illinois Department of Revenue hadn’t published anything on the federal tips deduction when we checked.Sep 23, 2026
IndianaNot confirmed yet——
IowaNot confirmed yet——
KansasNot confirmed yet——
KentuckyNot confirmed yet——
LouisianaNot confirmed yet——
MaineNot confirmed yet——
MarylandNot confirmed yet——
MassachusettsNot confirmed yet——
MichiganNot confirmed yet——
MinnesotaNot confirmed yet——
MississippiNot confirmed yet——
MissouriNot confirmed yet——
MontanaNot confirmed yet——
NebraskaNot confirmed yet——
NevadaNo state income tax on wages“Nevada residents do not pay state tax on income earned from salaries, wages, or similar compensation.”Sep 23, 2026
New HampshireNot confirmed yet——
New JerseyNot confirmed yet——
New MexicoNot confirmed yet——
New YorkProposed, not enactedNew York’s tax department shows a budget proposal to mirror the federal deduction, not an enacted rule.Sep 23, 2026
North CarolinaNot confirmed yet——
North DakotaNot confirmed yet——
OhioNot confirmed yet——
OklahomaNot confirmed yet——
OregonNot confirmed yet——
PennsylvaniaDoesn’t follow the federal deduction“N/A - PA Personal Income Tax has no provision to exempt certain tip income from taxation.”Sep 23, 2026
Rhode IslandNot confirmed yet——
South CarolinaNot confirmed yet——
South DakotaNot confirmed yet——
TennesseeNot confirmed yet——
TexasNo state income tax on wages“Texas does not have a personal income tax”Sep 23, 2026
UtahNot confirmed yet——
VermontNot confirmed yet——
VirginiaNot confirmed yet——
WashingtonNo state income tax on wages“Washington does not currently have an individual income tax.”Sep 23, 2026
West VirginiaNot confirmed yet——
WisconsinNot confirmed yet——
WyomingNot confirmed yet——

What TipMax will say (and won’t)

  • Will say: the federal deduction does not mean automatic state conformity.
  • Won’t say: a state’s position unless its tax agency has published it. Those rows say “Not confirmed yet.”
  • Will point you: to your state Department of Revenue or a qualified tax professional.

Why conformity varies

States tie their tax codes to the Internal Revenue Code on different schedules (rolling, fixed-date, or selective). A federal change for 2025–2028 does not change every state’s rules overnight.

Common mistakes

  • Quoting a friend’s state result as yours.
  • Ignoring state withholding all year because federal marketing said “no tax on tips.”
  • Reading “Not confirmed yet” as “tax-free” or as “taxed.” It only means no one has confirmed it.

Official sources

Last verified:

IRS tip recordkeeping page, Schedule 1-A, and IR-2026-28. Confirmed: the qualified tips deduction is a federal income tax deduction, and it does not by itself change state tax. State rows: each state tax agency page linked in the table, on the date shown.

Still open: Most states haven’t said yet whether they’ll follow the federal deduction, and some have proposals pending.

All No Tax on Tips questions →

TipMax Answers explains public IRS guidance in plain English for tipped workers. It is not tax, legal, or accounting advice. Rules can change. Confirm figures on IRS.gov and with a qualified tax professional before you file. TipMax the app helps you track tips and true hourly pay; it does not file your taxes. TipMax does not file federal or state returns.