No Tax on Tips Calculator for North Dakota (2026)
Calculate how much North Dakota workers save now that tips are deductible from federal taxable income (caps and income limits apply) under the OBBBA.
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Your Annual Tax Savings in North Dakota
Tips Tax Deduction in North Dakota
Under the One Big Beautiful Bill Act (OBBBA), workers in North Dakota who earn tips can deduct 100% of their tip income from federal income tax for tax years 2025 through 2028.
North Dakota Minimum Wage for Tipped Workers
The minimum wage in North Dakota is $7.25/hour. Tipped workers may be paid a lower base wage of $4.86/hour, with tips expected to make up the difference. This makes the federal tip tax deduction especially valuable for North Dakota workers.
Top Tipped Industries in North Dakota
- Restaurant servers
- Bartenders
- Hotel staff
- Delivery drivers
Does North Dakota Tax Tips? (State Conformity)
North Dakota has no state income tax, so combined with the federal tip tax deduction, tipped workers in North Dakota pay no income tax at all on their tips. Only FICA taxes (Social Security and Medicare) still apply.
How the No Tax on Tips Law Works
What Qualifies
- Cash tips received directly from customers
- Credit/debit card tips
- Tips from tip pools or tip sharing
- Service charges distributed as tips
What Doesn't Change
- FICA taxes still apply: You still pay 6.2% Social Security + 1.45% Medicare on tip income
- Tips must still be reported: Report all tips to your employer and on your tax return
- Annual cap: Deduction limited to $25,000 per year in tip income
- Income limit: The deduction applies to workers earning less than $150,000/year (single) or $300,000 (married filing jointly)
Overtime Tax Deduction in North Dakota (2026)
The same OBBBA Schedule 1-A rules apply nationwide: only the FLSA overtime premium (the half of time-and-a-half) is deductible, up to $12,500 ($25,000 joint), with MAGI phase-outs. North Dakota state income tax may still apply to overtime wages even when the federal premium deduction is available.
Use the free Overtime Tax Calculator to estimate federal savings for North Dakota workers — including common searches like “north dakota overtime tax calculator.”
Federal Calculators
Compare with the federal-level tools: Tip Tax Savings (Federal) | Overtime Tax Calculator (Federal)