Limits states' ability to tax income of employees working in multiple states.

The Mobile Workforce State Income Tax Simplification Act of 2026 restricts states' authority to tax income of employees who perform duties in multiple states. It specifies that income is taxable only in the employee's resident state and the state where they perform most duties. It excludes professional athletes, entertainers, production employees, and public figures from employee definitions. Employers can rely on employee determinations of work location unless there is fraud or collusion.

Limits states' ability to tax income of employees working in multiple states.

The Mobile Workforce State Income Tax Simplification Act of 2026 restricts states' authority to tax income of employees who perform duties in multiple states. It specifies that income is taxable only in the employee's resident state and the state where they perform most duties. It excludes professional athletes, entertainers, production employees, and public figures from employee definitions. Employers can rely on employee determinations of work location unless there is fraud or collusion.