| Tax year 2026 | Tips | Overtime |
|---|---|---|
| Federal return (Schedule 1-A) | Deductible up to $25,000 | Premium deductible up to $12,500 ($25,000 joint) |
| Nevada state return | not taxed (no state income tax on wages) | not taxed (no state income tax on wages) |
The federal deduction still applies in Nevada
Whatever Nevada does, you can still claim the federal deductions on Schedule 1-A if you qualify. For example, in 2026:
- A single server with $40,000 of income and $15,000 of qualified tips saves about $1,730 of federal income tax.
- A single hourly worker with $60,000 of income and $4,000 of overtime premium saves about $480.
Social Security and Medicare still apply to tips and overtime in every state.
What to do
- Estimate your federal savings with the tips calculator or overtime calculator (your state is already selected).
- Check the official rules at the Nevada tax agency before you file your state return.
- See all 50 states.
Other states: California, Texas, Florida, New York, Illinois, Georgia, Arizona, New Jersey, Colorado, North Carolina, Pennsylvania.
Common questions
Does Nevada tax tips in 2026?
No.
Does Nevada tax overtime in 2026?
No.
Can I still claim the federal deduction if I live in Nevada?
Yes. The federal tips and overtime deductions apply in every state, on Schedule 1-A of your federal return.
Sources
- Nevada state tax agency
- Tools Berry: Which states still tax tips in 2026 (updated Oct. 2, 2026)
- AP / PBS NewsHour: State tax returns and the tips and overtime breaks (Apr. 13, 2026)
- Clockspot: No tax on overtime by state (May 25, 2026)
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