New Hampshire has never taxed wage income, and its tax on interest and dividends was repealed effective 2025. Wage withholding is $0.
You keep all of the federal deduction
In most states the headline is only half true: the federal government stops taxing your tips and your state carries on. Here there is no state return to carry on with.
A single filer on $50,000 a year with $8,000 in tips keeps $960 from the federal deduction, and none of it goes back to New Hampshire.
What is still taken out
Social Security and Medicare. The tips and overtime deductions are income tax deductions only — they do not reduce FICA by a cent, in any state. On that same paycheck that is still $3,825a year, and it is the single most misunderstood part of “no tax on tips”.