H.R. 10142
Multi-State Worker Tax Fairness Act of 2026
Summary:
• The "Multi-State Worker Tax Fairness Act of 2026" limits how states may tax compensation earned by nonresident telecommuters and other multi-state workers by requiring actual physical presence in a state before that state can tax the worker's income
• States are explicitly prohibited from using "convenience of the employer" tests or similar rules to deem a nonresident worker as present in a state when they are physically working in another state
• Employers' own determinations govern whether time spent in another state counts as normal work time, nonworking time, or uncompensated time — states cannot override those employer designations
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• States are explicitly prohibited from using "convenience of the employer" tests or similar rules to deem a nonresident worker as present in a state when they are physically working in another state
• Employers' own determinations govern whether time spent in another state counts as normal work time, nonworking time, or uncompensated time — states cannot override those employer designations
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