Mobile Workforce State Income Tax Simplification Act of 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on the Judiciary.

Limits state taxes for workers who travel for jobs to simplify filing.

This bill would make it simpler for people who work in more than one state to pay their income taxes. It would stop non-resident states from taxing or withholding income from employees unless they work in that state for more than 30 days in a calendar year. Your home state would still tax your income. This would reduce confusion and paperwork for many workers and their employers.

What Would Change

Currently, states can tax and require withholding from employees who work there for even short periods, leading to complex rules. This bill would change that by allowing only two types of states to tax or require withholding from mobile workers: their resident state, and any non-resident state where they work for more than 30 days in a calendar year.

Key Provisions

Limits state income tax on mobile workers to only their home state and states where they work over 30 days in a calendar year.
Limits non-resident states from requiring employers to withhold income tax for mobile workers unless they work over 30 days in that state (the employee's home state can still require withholding).
Lets employers rely on employee estimates for time spent in different states to avoid penalties, unless there's fraud or collusion.
Excludes professional athletes, professional entertainers, certain film production workers, and public figures from these new rules.
Defines a "day" of work in a state based on where most duties are performed, not including travel time.

View on Congress.gov

HR 10271 · 119th Congress · AI Summary by gemini-2.5-flash · 8/10

Mobile Workforce State Income Tax Simplification Act of 2026

What Would Change

Key Provisions

Lobbying Activity