Limits states' ability to tax nonresident telecommuters' income based on physical presence.

The Multi-State Worker Tax Fairness Act of 2026 amends the United States Code to restrict how states can tax the income of nonresident telecommuters and multi-state workers. A state can only tax such income if the worker is physically present in that state. States cannot tax income earned while the worker is physically present in another state. The act also prohibits states from considering workers as present in their state based on home convenience or employer convenience tests. This change aims to ensure fair taxation practices for remote and multi-state workers.

Limits states' ability to tax nonresident telecommuters' income based on physical presence.

The Multi-State Worker Tax Fairness Act of 2026 amends the United States Code to restrict how states can tax the income of nonresident telecommuters and multi-state workers. A state can only tax such income if the worker is physically present in that state. States cannot tax income earned while the worker is physically present in another state. The act also prohibits states from considering workers as present in their state based on home convenience or employer convenience tests. This change aims to ensure fair taxation practices for remote and multi-state workers.