Multi-State Worker Tax Fairness Act of 2026
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill, the Multi-State Worker Tax Fairness Act of 2026, aims to limit how states can tax the income of people who work remotely for companies located in other states. It prevents states from taxing a worker’s compensation simply because they are working from home or because their work arrangement is convenient for the employer. The bill clarifies that physical presence in a state is required for a state to tax a nonresident worker’s income, and it establishes rules for determining when a period of work constitutes ‘normal work time.’
Key provisions
- States can only tax a nonresident worker’s income if they are physically present in the state.
- States cannot tax based on convenience of the worker’s work location.
- States cannot deem work-from-home time as ‘normal work time’ without employer confirmation.
- States cannot deem time spent in another state performing work as non-work time without employer confirmation.
- The bill defines key terms such as ‘State,’ ‘income tax,’ and ‘nonresident individual.’
- It clarifies that the bill applies to compensation earned as an employee.
- It explicitly states the bill does not affect taxation of corporations or other entities.
- The bill takes effect upon enactment.
Who is affected
- Nonresident workers
- State tax authorities
- Employers with remote workers
- Individuals who work remotely across state lines
Bill text
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Sponsors
Official sponsors from legislative records.
3 on record
Primary sponsor
Cosponsors
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