Bill would limit states to taxing traveling workers after 30 days

What does this do?

The Mobile Workforce State Income Tax Simplification Act of 2025 would set a national rule allowing a state to tax an employee's wages only if the employee lives there or physically works there more than 30 days a year. Employers could rely on an employee's good-faith estimate of work locations unless they already use daily time-tracking, in which case that data would apply.

Who does it affect?

The bill affects employees who travel for work across state lines, employers handling payroll and tax withholding for traveling staff, and state governments that collect nonresident income tax. Professional athletes, entertainers, certain film/TV production workers, and prominent public figures paid for one-time appearances are excluded and remain under existing state rules.

Why does it matter?

The rule would change how much income tax states collect from nonresident workers and reduce employer withholding obligations for brief work travel. States could see shifts in tax revenue depending on how often nonresident employees currently exceed or fall short of the 30-day threshold.

Where does it stand?