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119-s-1443119th CongressWALLET

Mobile Workforce State Income Tax Simplification Act of 2025

Sponsored By: Senator Thune, John [R-SD]

Introduced

Summary

Limits state income tax withholding to a worker's home state and any state where they work more than 30 days in a year. It would set clear rules for counting days, let employers rely on an employee's annual time estimate, require use of time-and-attendance data if kept, and define who counts as an "employee".

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  • Most mobile workers would face withholding only in their state of residence and in states where they perform duties for more than 30 days in a calendar year. The bill specifically carves out professional athletes, professional entertainers, qualified production employees, and certain public figures.
  • Employers could rely on an employee's annual estimate of where they expect to work to determine withholding and reporting, subject to exceptions for fraud or collusion. If an employer maintains a time-and-attendance system that records daily work location, that system's data must be used instead of the estimate.
  • States would be constrained by the two-jurisdiction rule and could set their own definitions of "wages" within the Act's framework. The bill also lays out day-counting rules, a hierarchy for resolving which state may tax wages, and would take effect on January 1 of the second calendar year after enactment.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Limit state tax on mobile workers

This bill would limit which States can tax wages when you work in more than one State. Only your home State and any nonresident State where you work more than 30 days in a calendar year could tax those wages. A work 'day' would count where you do more duties than in any other State, and travel time would not count. The bill would also define who is covered and exclude groups like professional athletes, entertainers, certain production workers, and some public figures.

New employer withholding and timing rules

This bill would let employers rely on an employee's yearly estimate of where they will work for withholding and penalty purposes. Employers could not rely on that estimate if they knew the employee committed fraud or if there was collusion to evade tax. If an employer keeps a daily time and attendance system that records work location, the employer must use that system's data instead. The rules would start on January 1 of the second calendar year after enactment and would not apply to tax obligations that accrued before that date.

Sponsors & CoSponsors

Sponsor

Thune, John [R-SD]

SD • R

Cosponsors

  • Sen. Cortez Masto, Catherine [D-NV]

    NV • D

    Sponsored 4/10/2025

  • Sen. Rosen, Jacky [D-NV]

    NV • D

    Sponsored 7/21/2026

Roll Call Votes

No roll call votes available for this bill.

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