Bill would limit states to taxing traveling workers after 30 days
In committeeS. 1443Latest action
Sponsor: John Thune · Senator · SD
AIDecoded by AI · checked against the recordRead the official text
Official title: Mobile Workforce State Income Tax Simplification Act of 2025
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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A new bill would let states tax nonresident workers' wages only after they work there more than 30 days a year.
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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.
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Where does it stand?
- IntroducedApr 10, 2025
- Senate committeeYou are here · Apr 10, 2025
- Senate vote
- House
- The president's desk
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the president.
Latest action: — Read twice and referred to the Committee on Finance. (text: CR S2566-2567)