All 51 jurisdictions

Does your state tax tips and overtime?

The federal deduction does not automatically reach your state return. In most states it never arrives at all — and the reason is a technicality almost nobody explains.

Getting the federal deduction does not mean your state follows suit. Of the 42 jurisdictions that tax wage income, only 7 let the tip deduction reduce your state bill and only 6 do so for overtime. Another 9 states have no income tax at all, so the question does not arise.

State conformity to the federal tip and overtime deductions
State	Tips	Overtime
Alabama	Still taxed	Partly
Alaska	No income tax	No income tax
Arizona	Deductible	Deductible
Arkansas	Still taxed	Still taxed
California	Still taxed	Still taxed
Colorado	Deductible	Partly
Connecticut	Still taxed	Still taxed
Delaware	Still taxed	Still taxed
District of Columbia	Still taxed	Still taxed
Florida	No income tax	No income tax
Georgia	Partly	Partly
Hawaii	Still taxed	Still taxed
Idaho	Deductible	Deductible
Illinois	Still taxed	Still taxed
Indiana	Partly	Partly
Iowa	Deductible	Deductible
Kansas	Still taxed	Still taxed
Kentucky	Still taxed	Still taxed
Louisiana	Still taxed	Still taxed
Maine	Still taxed	Still taxed
Maryland	Still taxed	Still taxed
Massachusetts	Still taxed	Still taxed
Michigan	Partly	Partly
Minnesota	Still taxed	Still taxed
Mississippi	Still taxed	Still taxed
Missouri	Still taxed	Still taxed
Montana	Deductible	Deductible
Nebraska	Still taxed	Still taxed
Nevada	No income tax	No income tax
New Hampshire	No income tax	No income tax
New Jersey	Still taxed	Still taxed
New Mexico	Still taxed	Still taxed
New York	Partly	Still taxed
North Carolina	Still taxed	Still taxed
North Dakota	Deductible	Deductible
Ohio	Still taxed	Still taxed
Oklahoma	Still taxed	Still taxed
Oregon	Deductible	Deductible
Pennsylvania	Still taxed	Still taxed
Rhode Island	Still taxed	Still taxed
South Carolina	Still taxed	Still taxed
South Dakota	No income tax	No income tax
Tennessee	No income tax	No income tax
Texas	No income tax	No income tax
Utah	Still taxed	Still taxed
Vermont	Still taxed	Still taxed
Virginia	Still taxed	Still taxed
Washington	No income tax	No income tax
West Virginia	Still taxed	Still taxed
Wisconsin	Still taxed	Still taxed
Wyoming	No income tax	No income tax

Every entry links to a page explaining that state’s position, the mechanism behind it, and the source it was checked against. State legislatures amend conformity mid-session, so each page carries the date it was last reviewed.