Mobile Workforce State Income Tax Simplification Act of 2026

Key Points

• The bill sets a national rule so employees who work in multiple states only owe state income tax to their home state and any state where they work more than 30 days in a year.
• Business travelers and short-term remote workers would stop owing income tax, or having to file returns, in states where they only worked a handful of days.
• Employers get simpler payroll rules, they can rely on an employee's own yearly estimate of travel time instead of tracking every day worked in every state, unless the company chooses to use a formal time-tracking system.
• Professional athletes, entertainers, film production workers, and certain public figures are excluded from these protections and remain subject to existing state tax rules.
• A workday counts toward the 30-day threshold based on where an employee does most of their work that day, and time spent traveling through a state does not count.