Mobile Workforce State Income Tax Simplification Act of 2026
Sponsored By: Representative Goldman, Craig A. [R-TX-12]
Introduced
Summary
This bill would limit state income tax on wages for employees who work in more than one State to the employee's State of residence and, after more than 30 days in a year, a single nonresident State. It would also create clear employer withholding rules and carve out specific exclusions for professional athletes, entertainers, qualified production workers, and certain public figures.
Show full summary
- Workers and families: Multi-State employees would generally owe income tax only to their home State and at most one other State where they perform duties for more than 30 days in a calendar year. Transit time does not count and certain gig or per-event workers are excluded from this rule.
- Employers and payroll: Employers would use either an employee's annual estimate of time in each State or contemporaneous time and attendance data if that system tracks daily locations. Employers can rely on employee estimates unless there is fraud or collusion to evade tax.
- States and scope: States could not require withholding or reporting for wages unless the worker meets the residence or the 30-day nonresident test. The act preserves State law where consistent with these rules and does not apply to tax obligations accrued before its effective date.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Limits on state tax for mobile workers
If enacted, this would limit which States can tax wages when you work in more than one State. Only your State of residence and any State where you are present and performing work more than 30 days in the calendar year could tax those wages. A State would not be able to withhold or report your wages unless it can tax them under this rule, and a qualifying nonresident State could begin withholding as soon as you first perform work there in the year.
Start date and no retroactive taxes
If enacted, this would take effect on January 1 of the second calendar year after enactment. The bill would not apply to any tax obligation that accrues before that effective date. That would protect taxpayers and employers from unexpected retroactive state income tax liabilities under this Act.
Employer rules and day counting
If enacted, this would define which State counts for a workday and set employer withholding rules. A day would count for the State where you do more of your duties that day; travel time would not count. If you work in your home State and only one other State that day, the other State would count. The bill would exclude pro athletes, professional entertainers, certain film production workers, and certain public figures from these rules. Employers could rely on an employee’s annual estimate of time unless they know of fraud or collusion. Ordinary employer records would not stop that reliance. But if an employer uses a qualifying time-and-attendance system that records daily work location, the employer must use that system’s data instead of the employee’s estimate.
Sponsors & CoSponsors
Sponsor
Goldman, Craig A. [R-TX-12]
TX • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov