Washington does not tax wage income. It levies a tax on certain long-term capital gains, which does not apply to your paycheck.
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 Washington.
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”.