BTC University
State by State Tip Tax Guidelines
Understand how your state taxes tips under the new federal No Tax on Tips law—some states still tax tips as income, and this guide breaks down your state's rules so you know your actual tax savings.
What's Inside
A done-for-you pdf-guide, ready to download
Understand how your state taxes tips under the new federal law—some states don't tax tips at all, while others still do, and this guide breaks down your exact obligations by state.
- Print-ready PDF — use it the moment it downloads
The new federal “No Tax on Tips” law could save you on your federal taxes if you’re earning qualifying tips.
But here’s what many stylists don’t realize: your state might still tax those same tips, which means your actual savings could be a lot less than you think.
Some states have no income tax at all. But if yours does, you need to know how to play by their rules.
This guide gives you a quick state-by-state breakdown so you know exactly where you stand come tax time.
You’ll see:
- Which states have no income tax on tips
- Which states currently do tax tips as regular income
- Which states have local or city taxes that create extra complications.
We’ll also cover what happens if you live in one state but work in another, and why you should never assume your state automatically follows federal rules. This guide pairs with our comprehensive No Tax on Tips guides to give you the complete picture of both your federal and state tax obligations.
Download your copy now, and know exactly what to expect from your state this filing season!
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