---
title: "Does No Tax on Tips Apply to State Taxes?"
description: "Not automatically. The federal tip deduction is a federal income tax rule. Whether your state follows it depends on your state’s own tax law."
url: https://www.tipmaxapp.com/us/answers/does-no-tax-on-tips-apply-to-state-taxes
language: en
publisher: TipMax (Entermaurs Incorporated)
date_published: 2026-09-23
last_verified: 2026-09-23
---

# Does my state also stop taxing tips?

**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.

## Plain English

### State by state

| State | Status | What the state says | Checked |
| --- | --- | --- | --- |
| Alabama | Not confirmed yet | — | — |
| Alaska | Not confirmed yet | — | — |
| Arizona | Not confirmed yet | — | — |
| Arkansas | Not confirmed yet | — | — |
| California | California does not follow the federal tips deduction for state income tax. | “No, with respect to the deduction on tips provisions. Yes, with respect to the information return provisions.” | [2026-09-23](https://www.ftb.ca.gov/about-ftb/data-reports-plans/Summary-of-Federal-Income-Tax-Changes/index.html) |
| Colorado | Not confirmed yet | — | — |
| Connecticut | Not confirmed yet | — | — |
| Delaware | Not confirmed yet | — | — |
| District of Columbia | Not confirmed yet | — | — |
| Florida | Florida has no personal income tax. | “Florida does not impose a personal income tax, so there are no filing requirements.” | [2026-09-23](https://floridarevenue.com/faq/Pages/FAQDetails.aspx?FAQID=1466) |
| Georgia | Georgia doesn’t follow the federal deduction, but up to $1,750 of tipped wages may be excluded from Georgia taxable income. | “However, up to $1,750 of each may be exempted from the calculation of taxable net income.” | [2026-09-23](https://dor.georgia.gov/taxes/important-tax-updates) |
| Hawaii | Not confirmed yet | — | — |
| Idaho | Not confirmed yet | — | — |
| Illinois | The Illinois Department of Revenue hadn’t published anything on the federal tips deduction when we checked. |  | [2026-09-23](https://tax.illinois.gov/research/publications/bulletins/fy-2026-15.html) |
| Indiana | Not confirmed yet | — | — |
| Iowa | Not confirmed yet | — | — |
| Kansas | Not confirmed yet | — | — |
| Kentucky | Not confirmed yet | — | — |
| Louisiana | Not confirmed yet | — | — |
| Maine | Not confirmed yet | — | — |
| Maryland | Not confirmed yet | — | — |
| Massachusetts | Not confirmed yet | — | — |
| Michigan | Not confirmed yet | — | — |
| Minnesota | Not confirmed yet | — | — |
| Mississippi | Not confirmed yet | — | — |
| Missouri | Not confirmed yet | — | — |
| Montana | Not confirmed yet | — | — |
| Nebraska | Not confirmed yet | — | — |
| Nevada | Nevada has no state income tax on wages. | “Nevada residents do not pay state tax on income earned from salaries, wages, or similar compensation.” | [2026-09-23](https://tax.nv.gov/about-nevada-department-of-taxation/income-tax-in-nevada/) |
| New Hampshire | Not confirmed yet | — | — |
| New Jersey | Not confirmed yet | — | — |
| New Mexico | Not confirmed yet | — | — |
| New York | New York’s tax department shows a budget proposal to mirror the federal deduction, not an enacted rule. |  | [2026-09-23](https://www.tax.ny.gov/data/stats/ter/fiscal-year27/executive-budget-tax-expenditure-proposals.htm) |
| North Carolina | Not confirmed yet | — | — |
| North Dakota | Not confirmed yet | — | — |
| Ohio | Not confirmed yet | — | — |
| Oklahoma | Not confirmed yet | — | — |
| Oregon | Not confirmed yet | — | — |
| Pennsylvania | Pennsylvania’s personal income tax has no provision to exempt tip income. | “N/A - PA Personal Income Tax has no provision to exempt certain tip income from taxation.” | [2026-09-23](https://www.pa.gov/agencies/revenue/resources/tax-law-policies-bulletins-notices/tax-cuts-and-jobs-one-big-beautiful-bill-acts) |
| Rhode Island | Not confirmed yet | — | — |
| South Carolina | Not confirmed yet | — | — |
| South Dakota | Not confirmed yet | — | — |
| Tennessee | Not confirmed yet | — | — |
| Texas | Texas has no personal income tax. | “Texas does not have a personal income tax” | [2026-09-23](https://comptroller.texas.gov/economy/fiscal-notes/archive/2016/february/starting.php) |
| Utah | Not confirmed yet | — | — |
| Vermont | Not confirmed yet | — | — |
| Virginia | Not confirmed yet | — | — |
| Washington | Washington doesn’t currently have an individual income tax. A new tax on income over $1 million starts January 1, 2028. | “Washington does not currently have an individual income tax.” | [2026-09-23](https://dor.wa.gov/taxes-rates/income-tax) |
| West Virginia | Not confirmed yet | — | — |
| Wisconsin | Not confirmed yet | — | — |
| Wyoming | Not 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

- [IRS: Tip recordkeeping and reporting (federal qualified tips deduction)](https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting)
- [Schedule 1-A (Form 1040)](https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf)
- [IRS newsroom: Schedule 1-A published (IR-2026-28, Mar. 2, 2026)](https://www.irs.gov/newsroom/irs-published-schedule-taxpayers-will-use-to-claim-deductions-on-no-tax-on-tips-no-tax-on-overtime-no-tax-on-car-loans-no-tax-on-seniors)

## Last verified

September 23, 2026. 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.

## Related

- [How No Tax on Tips works](https://www.tipmaxapp.com/us/answers/how-no-tax-on-tips-works-2026)
- [Dollar cap and phase-out](https://www.tipmaxapp.com/us/answers/no-tax-on-tips-dollar-cap-and-phase-out)
- [Do I still pay Social Security and Medicare?](https://www.tipmaxapp.com/us/answers/do-i-still-pay-social-security-medicare-on-tips)
- [Married filing and the tip deduction](https://www.tipmaxapp.com/us/answers/married-filing-and-tip-deduction)

## How TipMax helps with this

Your state return starts from the same tip records.

TipMax is an iPhone app for servers and bartenders that tracks tips and tip-outs and turns a restaurant menu into study flashcards.

- Log cash and card tips per shift in seconds.
- Weekly, monthly, and pay-period totals.

Download TipMax free: https://apps.apple.com/us/app/tipmax-study-track-earn/id6744850146

---

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.