No Tax on Tips Calc

Sources

Every number on this site traces to one of these 90 documents. Each was fetched and read on October 5, 2026; the vintage is the date the publisher shows. Only sources the calculator actually uses are listed.

DocumentPublisherVintageSupplies
The One, Big, Beautiful Bill Act — Analysis and Tax Provisions (executive summary)Alabama Department of Revenue2025-10-31New Section 224 (No Tax on Tips): “Tied to Federal: No”
Alaska minimum wage to increase (news release 25-11)Alaska Department of Labor and Workforce Development2025$14.00 from July 1, 2026; $15.00 from July 1, 2027 (Ballot Measure 1)
Tax Division — tax types administeredAlaska Department of Revenue2026No individual income tax among Alaska tax programs
2025 Arizona Form 140 instructionsArizona Department of Revenue20252.5% flat rate
A.R.S. § 43-1022, Subtractions from Arizona gross incomeArizona Legislature2026Subtraction of qualified tips deducted under IRC § 224 for taxable years from and after Dec. 31, 2024
2025 AR1000F/AR1000NR instructionsArkansas Department of Finance and Administration2025Arkansas computes its own gross income; no tips exclusion
Minimum WageArkansas Department of Labor and Licensing2026$2.63 tipped cash wage
California’s minimum wage set to increase to $17.40 per hour on January 1, 2027 (DIR news 2026-66)California Department of Industrial Relations2026$17.40 from Jan. 1, 2027; no tip credit (DLSE minimum wage FAQ)
Summary of Federal Income Tax Changes (OBBBA section 70201, No tax on tips)California Franchise Tax Board2026“California does not conform to the deduction for tips received.”
Colorado Minimum Wage will Increase to $15.71/hour in 2027Colorado Department of Labor and Employment2026$15.71 and $12.69 tipped from Jan. 1, 2027
2025 Colorado Individual Income Tax Filing Guide (Book 104, DR 0104)Colorado Department of Revenue2025-10-29Return starts from federal taxable income (Form 1040 line 15); additions list contains no tips add-back; 4.4% rate
2025 Form CT-1040 instructionsConnecticut Department of Revenue Services2025-12Connecticut return starts from federal adjusted gross income
Council separates elements of District tax code from the federalCouncil of the District of Columbia2025District decoupled from the federal tips and overtime deductions
Tax Season UpdatesDelaware Division of Revenue2026“OBBBA deductions for no tax on tips … will not flow through to the Delaware Personal Income Tax”
House Substitute 1 for House Bill 386 (Tipped Worker Tax Relief Act of 2026) — bill statusDelaware General Assembly2026-06-17Status “Out of Committee 6/17/26”; not enacted
Florida Constitution, Article VII, Section 5(a)Florida Legislature2026“No tax … upon the income of natural persons who are residents or citizens of the state shall be levied” beyond federal credit amounts
2026 Florida Minimum Wage AnnouncementFloridaCommerce2026-09$15.00 and $11.98 direct wage for tipped employees, Sept. 30, 2026 through Dec. 31, 2027
HB 463 (2026), as passed and signed May 11, 2026 — O.C.G.A. § 48-7-27(a)(17)Georgia General Assembly / Office of the Governor2026-05-11Exclusion of up to $1,750 of cash tips for taxable years 2026–2028; 4.99% rate from Jan. 1, 2026
Minimum Wage and Tip CreditHawaii Department of Labor and Industrial Relations2026$16.00 from Jan. 1, 2026; tip credit conditions
Act 035, SLH 2026 (H.B. 2329), Relating to Conformity to the Internal Revenue CodeHawaii State Legislature2026-05-26IRC as amended Dec. 31, 2025 for taxable years after 2025; § 225 (overtime) made inoperative, § 224 (tips) not listed as inoperative
HRS § 235-51, Tax imposed on individuals; ratesHawaii State Legislature2024Rate tables for taxable years beginning after Dec. 31, 2024
Idaho Code § 63-3024Idaho Legislature20255.3% rate
Update on filing 2025 Idaho income taxes now that conformity is law (House Bill 559)Idaho State Tax Commission2026-03Idaho conforms to the deduction for qualified tips
2025 Form IL-1040 instructionsIllinois Department of Revenue2025Illinois income starts from federal adjusted gross income; no Schedule M subtraction for tips
Income Tax Information Bulletin #128, Deductions for Tips, Overtime, and Vehicle Loan InterestIndiana Department of Revenue2026-06Indiana deduction equal to the federal qualified-tips deduction, 2026 tax year only
Rates, Fees & PenaltiesIndiana Department of Revenue20262.95% individual rate for 2026
2025 Schedule 1-A (Form 1040), Additional Deductions — Part II, No Tax on TipsInternal Revenue Service2025-11-04Line-by-line phase-out arithmetic (excess MAGI divided by $1,000, rounded down, times $100); $150,000 threshold for every status except married filing jointly
Revenue Procedure 2025-32 (2026 inflation adjustments; 2025 standard deduction as amended by OBBBA)Internal Revenue Service2025-10-092026 tax-rate tables and standard deductions; 2025 standard deductions ($15,750 / $31,500 / $23,625)
Revenue Procedure 2024-40 (2025 inflation adjustments)Internal Revenue Service2024-10-222025 tax-rate tables
Impact of One Big Beautiful Bill Act on Employee WithholdingIowa Department of Revenue2026Iowa starts from federal taxable income with rolling conformity and conforms to no tax on tips (2025 and 2026)
Iowa Code 2026 § 422.5Iowa Legislature2025-123.8% flat rate
SB 277 — Exempting certain qualified tips from state income tax (status: Died)Kansas Legislature2026Kansas tips subtraction bill died
2025 Kentucky Form 740 instructionsKentucky Department of Revenue2025“qualified tips, overtime income, and car loan interest are not deductible on the Kentucky return”
Revenue Information Bulletin 25-012, Louisiana Individual Income Tax ReformLouisiana Department of Revenue2025Louisiana starts from federal adjusted gross income
Maine’s Minimum Wage to Increase to $15.70 Per Hour in 2027Maine Department of Labor2026$15.70 and $7.85 service-employee wage from Jan. 1, 2027
Summary of 2026 legislative changes (legischange26)Maine Revenue Services2026No tips deduction among 2026 law changes
Office of Tax Policy Report on Maine Tax Conformity and Federal Public Law 119-21Maine Revenue Services, Office of Tax Policy2025-09-30No Tax on Tips: “Do not adopt” in the conformity recommendations
Maryland Minimum Wage and Overtime LawMaryland Department of Labor2026$3.63 minimum tipped cash wage; tip credit wage statement
HB 201 (2026) No Income Taxes on Tips Act — bill status and fiscal noteMaryland General Assembly / Department of Legislative Services2026Bill heard Jan. 29, 2026, not enacted; fiscal note: the federal below-the-line deduction does not flow to Maryland
Differences Between MA and Federal Tax Law for Personal IncomeMassachusetts Department of Revenue2026“Massachusetts does not allow the federal deduction of qualified tips income.”
Minimum wage schedule poster (WHD-9904) and Minimum Wage & Overtime pageMichigan Department of Labor and Economic Opportunity2025-02-21$13.73 / $5.49 tipped (2026); $15.00 / $6.30 tipped (Jan. 1, 2027); tipped rate rises to 50% by 2031
New Deductions for Qualified Overtime Compensation and Qualified Tips (2025 PA 24)Michigan Department of Treasury2026-01-06Deduction mirrors the federal one for 2026, 2027 and 2028; not available for 2025
MCL 206.51Michigan Legislature20264.25% rate
Minimum wage in MinnesotaMinnesota Department of Labor and Industry2026$11.41 (2026), $11.87 (Jan. 1, 2027); no tip credit
2025–26 Tax Pro Annual Webinar Q&AMinnesota Department of Revenue2026-02“The Minnesota return starts with FAGI, so all of their tip and overtime income is … taxable to Minnesota”
Individual Income Tax Frequently Asked QuestionsMississippi Department of Revenue2026Tips and gratuities are subject to Mississippi income tax and withholding
Minimum WageMissouri Department of Labor and Industrial Relations2026$15.00 and 50% ($7.50) for tipped employees in 2026
2025 Form MO-1040 instructionsMissouri Department of Revenue2025Missouri starts from federal adjusted gross income; no tips subtraction
Montana’s Minimum WageMontana Department of Labor & Industry2026$10.85; no tip credit; CPI adjustment by Sept. 30
2025 Montana Form 2 instructionsMontana Department of Revenue2025Schedule 1-A deductions including qualified tips “are included in the calculation of Montana taxable income”; 2025 brackets (4.7% / 5.9%)
MCA 15-30-2103 (temporary version, tax year 2026)Montana Legislature20252026 brackets: 4.7% to $47,500 single / $95,000 joint / $71,250 head of household, 5.65% above
Effects of the One Big Beautiful Bill Act on the State of NebraskaNebraska Department of Revenue2025-09-02Tips deduction is taken after federal AGI and has no automatic Nebraska impact
Nevada Constitution, Article 10, Section 1(9)Nevada Legislature2026“No income tax shall be levied upon the wages or personal income of natural persons.”
RSA Chapter 77, Taxation of Incomes — “Chapter is repealed”New Hampshire General Court2026Interest and dividends tax chapter repealed; New Hampshire never taxed wages
New Jersey’s Minimum Wage chart (MW-570, 9/26)New Jersey Department of Labor and Workforce Development2026-092027: $16.48 most employers, $16.25 seasonal & small, $6.61 cash wage for tipped workers
One Big Beautiful Bill Act and the New Jersey Gross Income TaxNew Jersey Division of Taxation2026Federal deductions for tips do not affect the New Jersey return
Minimum Wage InformationNew Mexico Department of Workforce Solutions2026$3.00 tipped cash wage
HB 264 (2026) — Income tax deduction for qualified tips (status: Died)New Mexico Legislature2026New Mexico tips deduction bill died
Your New York State Minimum WageNew York State Department of Labor2026Rates unchanged on Jan. 1, 2027; tipped service and food service cash wages and tip credits by region
Chapter 59 of 2026 (S.9009-C), Part B — Tax Law § 612(c)(48)New York State Legislature2026-05-28Subtraction of up to $25,000 to the extent allowed federally under IRC § 224, taxable years beginning on or after Jan. 1, 2026
New York Tax Law § 601New York State Senate20262026 rate schedules
Questions and Answers About the Impact of Federal Law on N.C. Income Tax Returns for Tax Year 2025North Carolina Department of Revenue2026New OBBBA deductions, including tips, cannot be deducted on 2025 North Carolina returns
2025 Form ND-1 and N.D.C.C. § 57-38-30.3North Dakota Office of State Tax Commissioner / Legislative Assembly2025-12Return starts from federal taxable income (Form 1040 line 15); rate schedule 0% / 1.95% / 2.5% (statutory base brackets, indexed annually)
Governor Lamont announces minimum wage will increase (Sept. 2025)Office of the Governor of Connecticut2025-092026 increase; future rates announced by Oct. 15 each year
Ohio Minimum Wage to Increase by 3.5% in 2027Ohio Department of Commerce2026$11.40 / $5.70 tipped from Jan. 1, 2027; employer threshold $420,000
2025 Ohio IT 1040 instructionsOhio Department of Taxation2025Ohio return starts from federal adjusted gross income
2026 Tax Legislation SummaryOklahoma Tax Commission2026No tips deduction among enacted 2026 measures (HB 3377 stalled in committee)
Minimum wage (BOLI)Oregon Bureau of Labor and Industries2026July 1, 2026 – June 30, 2027 regional rates; tip credits illegal
2025 Publication OR-17, Oregon Individual Income Tax GuideOregon Department of Revenue2025“Oregon allows the same deduction for tip income that is allowed on your federal return” (ORS 316.048, subtraction code 390); 2025 rate charts
2026 Oregon Estimated Income Tax InstructionsOregon Department of Revenue20262026 tax rate charts S and J
PA Personal Income Tax Guide — Gross CompensationPennsylvania Department of Revenue2026Tips are taxable compensation; federal deductions are not permitted
Minimum Wage (R.I. Gen. Laws § 28-12-3) and § 28-12-5 Employees receiving gratuitiesRhode Island Department of Labor and Training / R.I. General Assembly2026$17.00 from Jan. 1, 2027; tipped cash wage floor $3.89
RI Division of Taxation presentation to NATP (Jan. 8, 2026): H.R. 1 Rhode Island responseRhode Island Division of Taxation2026-01-08“Tip and Overtime Income Exemptions … No RI impact (since below the line deduction)”
Contribution and Benefit BaseSocial Security Administration, Office of the Chief Actuary2025-10Social Security wage base $176,100 (2025) and $184,500 (2026); 6.2% OASDI and 1.45% Medicare employee rates
SC Information Letter #26-4 (Revised), IRC Conformity UpdateSouth Carolina Department of Revenue2026-01-30Taxpayers must adjust (add back) the federal tips deduction until the Legislature addresses conformity
H. 3368 bill history (Senate second reading failed Mar. 31, 2026)South Carolina General Assembly2026-03-31IRC conformity update did not pass
Minimum WageSouth Dakota Department of Labor and Regulation2026$11.85 and $5.925 tipped (Jan. 1, 2026); annual CPI adjustment
Individuals — TaxesSouth Dakota Department of Revenue2026“South Dakota is one of seven states that does not impose a state income tax.”
Hall Income TaxTennessee Department of Revenue2026“The Hall Income tax was repealed for tax periods that begin on January 1, 2021, or later.” (it never reached wages)
Texas Constitution, Article 8, Section 24-aTexas Legislature2026“The legislature may not impose a tax on the net incomes of individuals”
Minimum Wages for Tipped Employees (table by state)U.S. Department of Labor, Wage and Hour Division2026-07-01Combined minimum, maximum tip credit, minimum cash wage and tipped-employee threshold for every state in effect July 1, 2026
Final regulations, Occupations That Customarily and Regularly Received Tips; Definition of Qualified Tips (TD 10044, 26 CFR 1.224-1)U.S. Treasury / IRS, Federal Register 91 FR 190262026-04-13$25,000 cap, $100-per-$1,000 phase-out over $150,000 / $300,000 MAGI, definition of qualified tips, self-employed net-income limit, SSN and joint-return rules, the 71-occupation TTOC list, termination after 2028
January 2026 Webinar — 2025 Utah Tax UpdatesUtah State Tax Commission2026-01-15“These additional deductions will have no effect on the Utah return as they are a ‘below the line’ deduction.”
H.R. 1 Reconciliation Bill (OBBBA) ConformityVermont Department of Taxes2026Qualified tips deduction does not flow through to Vermont
2025 Form 760 instructions and Tax Bulletin 26-1Virginia Department of Taxation2026Virginia conforms to H.R. 1 only to the extent it affects federal AGI or itemized deductions
Minimum WageWashington State Department of Labor & Industries2026$17.13 (2026), $17.73 (Jan. 1, 2027); tips cannot count toward minimum wage
Income taxWashington State Department of Revenue2026“Washington does not currently have an individual income tax.”
HB 4347 (2026) bill status — last action: to House Finance 01/15/26West Virginia Legislature2026Tips modification bill not enacted
2025 Senate Bill 36 — income tax exemption for cash tips (status: veto sustained May 13, 2026)Wisconsin Legislature2026-05-13Wisconsin tips exemption vetoed; veto sustained
Wyoming Department of Revenue — divisionsWyoming Department of Revenue2026Department administers excise, mineral and property taxes; no individual income tax

Figures verified against primary sources on