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State conformity · NY

New York — qualified-tips deduction conformity

Decoupled from BOTH the federal qualified-tips and qualified-overtime deductions — neither flows through to state taxable income.[1]
Policy state — Last verified2026-05-07Federal cap source

Personalized calculation

What this means for New York workers

This state has explicitly decoupled from BOTH the qualified-tips and the qualified-overtime federal deductions. Workers must add back the federal AGI reduction on their state return; the deductions reduce federal taxable income but not state taxable income.

Last verified: 2026-05-07New York 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 New York state-return path described above. /decode →

  2. Read the New York DOR source.

    https://www.tax.ny.gov/

  3. See all 50 states.

    /state-conformity →