Does North Dakota tax tips and overtime?

Pure automatic conformity with no legislation at all: the Office of State Tax Commissioner's 2025 individual income tax instructions state that "The starting point for computing North Dakota taxable income perpetually conforms to the computation of federal taxable income. As a result, the federal changes to income and deductions that impact the computation of federal taxable income are by default included in the starting point for computing North Dakota taxable income for all years," and the booklet expressly lists "Tip income and overtime pay exclusions" among the OBBBA changes that flow through; Form ND-1/ND-EZ line 1b is federal taxable income taken from federal Form 1040 line 15, which is computed after the new Schedule 1-A deductions.

Same automatic mechanism and the same instruction booklet passage, which names the overtime pay exclusion alongside the tip exclusion; North Dakota has passed no decoupling legislation (contrast Colorado, which starts from the same base but affirmatively decoupled from the overtime deduction), and the Tax Commissioner's office projects roughly $13 million of state income tax savings from overtime and $1 million from tips.