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State conformity · ND

North Dakota — qualified-tips deduction conformity

Rolling conformity — the federal qualified-tips deduction flows through to state taxable income.[1]
Policy state — Last verified2026-05-07Federal cap source

Personalized calculation

What this means for North Dakota workers

This state uses federal AGI as the starting point for state taxable income, with rolling conformity to the IRC. Because the qualified-tips and qualified-overtime deductions are above-the-line federal deductions, they reduce federal AGI — and that reduction passes through to state taxable income automatically. Workers do not need to take any extra step at the state level.

Last verified: 2026-05-07North Dakota DOR / legislation source →

Statute-cited expansion

Federal source

The federal deductions sit at 26 USC §224 (qualified tips) and §225 (qualified overtime). State conformity is keyed to whether the state uses federal AGI (or federal taxable income) as the starting point for state taxable income, and whether the state has affirmatively decoupled from §224 / §225 for state tax purposes.

  • 26 USC §224(b)(1)$25,000 federal qualified-tips cap.
  • 26 USC §225(b)(1)$12,500 single / $25,000 MFJ federal qualified-overtime cap.

Actionable artifact

Next step

  1. Run the decoder with your numbers.

    The decoder shows the federal AGI reduction. Compare against the North Dakota state-return path described above. /decode →

  2. Read the North Dakota DOR source.

    https://www.tax.nd.gov/

  3. See all 50 states.

    /state-conformity →