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Does Nevada tax tips and overtime?

No. Nevada has no state income tax on wages, so tips and overtime aren't taxed by the state.

By Rogger Taipe · Updated October 12, 2026 · Tax years 2025 and 2026 · Based on IRS guidance

Tax year 2026TipsOvertime
Federal return (Schedule 1-A)Deductible up to $25,000Premium deductible up to $12,500 ($25,000 joint)
Nevada state returnnot 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

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

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