The Mobile Workforce State Income Tax Simplification Act of 2025 limits where states can tax workers who perform jobs in multiple states. Under the bill, employee income can only be taxed by the state where the worker lives or by any state where the employee works for more than 30 days in a calendar year—preventing states from taxing wages earned during brief visits. The legislation applies to most employees but exempts professional athletes, entertainers, production workers on film sets, and certain public figures, who remain subject to existing state tax rules. Employers can rely on employee estimates of where they'll work unless the employer suspects fraud, though companies that maintain detailed time-tracking systems must use that data instead. The bill becomes effective on January 1 of the second calendar year after enactment, meaning it would take effect in 2027, and applies only to tax obligations that accrue after that date.
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