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State conformity · 15 verified jurisdictions

Does your state honor the qualified-tips deduction?

The qualified-tips and qualified-overtime deductions reduce federal AGI. Whether they reduce statetaxable income depends on each state's conformity stance. 15 jurisdictions have a verified primary-source stance as of 2026-05-07; the rest are marked pending until state DOR guidance is confirmed. 15 of the verified jurisdictions have a dedicated per-state page.[1]
Policy state — Last verified2026-05-07Federal cap source

Personalized calculation

Alabama: Pending DOR guidanceAlaska: No state income taxArizona: Pending DOR guidanceColorado: DecoupledFlorida: No state income taxGeorgia: Pending DOR guidanceIndiana: Flows through (rolling)Kansas: Pending DOR guidanceMaine: DecoupledMassachusetts: Pending DOR guidanceMinnesota: Pending DOR guidanceNew Jersey: Pending DOR guidanceNorth Carolina: Pending DOR guidanceNorth Dakota: Flows through (rolling)Oklahoma: Pending DOR guidancePennsylvania: Pending DOR guidanceSouth Dakota: No state income taxTexas: No state income taxWyoming: No state income taxConnecticut: Pending DOR guidanceMissouri: Pending DOR guidanceWest Virginia: Pending DOR guidanceIllinois: DecoupledNew Mexico: Pending DOR guidanceArkansas: Pending DOR guidanceCalifornia: DecoupledDelaware: Pending DOR guidanceDistrict of Columbia: DecoupledHawaii: Pending DOR guidanceIowa: Flows through (rolling)Kentucky: Pending DOR guidanceMaryland: Pending DOR guidanceMichigan: Flows through (rolling)Mississippi: Pending DOR guidanceMontana: Flows through (rolling)New Hampshire: No state income taxNew York: DecoupledOhio: Pending DOR guidanceOregon: Flows through (rolling)Tennessee: No state income taxUtah: Pending DOR guidanceVirginia: Pending DOR guidanceWashington: No state income taxWisconsin: Pending DOR guidanceNebraska: Pending DOR guidanceSouth Carolina: Flows through (rolling)Idaho: Flows through (rolling)Nevada: No state income taxVermont: Pending DOR guidanceLouisiana: Pending DOR guidanceRhode Island: Decoupled

Federal AGI reduction is the same in every state; what differs is whether it flows through to state taxable income. Verified stances are pinned to a primary source in the table below; the rest are marked pending until state DOR guidance is confirmed.

Filter by status

Showing 51 of 51 jurisdictions

State conformity matrix for the OBBBA qualified-tips and qualified-overtime deductions.
StatusNotesSource
ALAlabamaPending state DOR guidanceNot yet confirmed
AKAlaskaNo state income tax
AZArizonaPending state DOR guidanceNot yet confirmed
ARArkansasPending state DOR guidanceNot yet confirmed
CACaliforniaDecoupled — state-specific pathstate DOR
COColoradoDecoupled — state-specific pathstate DOR
CTConnecticutPending state DOR guidanceNot yet confirmed
DEDelawarePending state DOR guidanceNot yet confirmed
DCDistrict of ColumbiaDecoupled — state-specific pathstate DOR
FLFloridaNo state income tax
GAGeorgiaPending state DOR guidanceNot yet confirmed
HIHawaiiPending state DOR guidanceNot yet confirmed
IDIdahoRolling — flows throughstate DOR
ILIllinoisDecoupled — state-specific pathstate DOR
INIndianaRolling — flows throughstate DOR
IAIowaRolling — flows throughstate DOR
KSKansasPending state DOR guidanceNot yet confirmed
KYKentuckyPending state DOR guidanceNot yet confirmed
LALouisianaPending state DOR guidanceNot yet confirmed
MEMaineDecoupled — state-specific pathstate DOR
MDMarylandPending state DOR guidanceNot yet confirmed
MAMassachusettsPending state DOR guidanceNot yet confirmed
MIMichiganRolling — flows throughstate DOR
MNMinnesotaPending state DOR guidanceNot yet confirmed
MSMississippiPending state DOR guidanceNot yet confirmed
MOMissouriPending state DOR guidanceNot yet confirmed
MTMontanaRolling — flows throughstate DOR
NENebraskaPending state DOR guidanceNot yet confirmed
NVNevadaNo state income tax
NHNew HampshireNo state income tax
NJNew JerseyPending state DOR guidanceNot yet confirmed
NMNew MexicoPending state DOR guidanceNot yet confirmed
NYNew YorkDecoupled — state-specific pathstate DOR
NCNorth CarolinaPending state DOR guidanceNot yet confirmed
NDNorth DakotaRolling — flows throughstate DOR
OHOhioPending state DOR guidanceNot yet confirmed
OKOklahomaPending state DOR guidanceNot yet confirmed
OROregonRolling — flows throughstate DOR
PAPennsylvaniaPending state DOR guidanceNot yet confirmed
RIRhode IslandDecoupled — state-specific pathstate DOR
SCSouth CarolinaRolling — flows throughstate DOR
SDSouth DakotaNo state income tax
TNTennesseeNo state income tax
TXTexasNo state income tax
UTUtahPending state DOR guidanceNot yet confirmed
VTVermontPending state DOR guidanceNot yet confirmed
VAVirginiaPending state DOR guidanceNot yet confirmed
WAWashingtonNo state income tax
WVWest VirginiaPending state DOR guidanceNot yet confirmed
WIWisconsinPending state DOR guidanceNot yet confirmed
WYWyomingNo state income tax

Statute-cited expansion

How conformity works

  • Rolling conformity

    State automatically conforms to the current federal AGI definition. Federal qualified-tips deduction flows through to state taxable income with no state-level action.

  • Static / pending conformity

    State conforms to the IRC as of a fixed date. Whether the OBBBA addition flows through depends on that date and any state legislative update; some states will sit static until their legislature acts.

  • Decoupled

    State explicitly decouples — by statute or DOR notice — from the federal qualified-tips and/or qualified-overtime deduction at the state-income-tax level. Tips reduce federal AGI; do NOT reduce state taxable income.

  • No state income tax

    AK, FL, NV, SD, TN, TX, WA, WY (and NH for non-investment income). The conformity question doesn't apply at the state level.

  • Pending DOR guidance

    Stance not yet verified at primary source. We do not publish a stance from a secondary aggregator on a YMYL surface; this row updates when state DOR guidance lands and the row is verified.

Actionable artifact

What this means for you

  1. 1. Find your state in the matrix.

    Click the abbreviation if it has a dedicated page. The per-state page links to the DOR primary source.

  2. 2. Run the decoder with your state.

    The decoder shows a state-conformity callout when you enter your state. Use /decode to see the federal vs. state split.

  3. 3. Stance not verified? Check back.

    Quarterly review cadence (90 days). New DOR guidance is pinned to its primary URL with a fresh last-verified date.