Washington, DC –Today, Representatives Jim Himes (CT-04), Chris Pappas (NH-01), and Josh Gottheimer (NJ-05), introduced the Multi-State Worker Tax Fairness Act. This bill establishes a uniform standard for taxing income based on physical presence in a state. In doing so, the bill prohibits a state from taxing a nonresident’s income earned when the individual was not physically in that state.
“Despite a pandemic-driven surge in telework, conflicting state tax rules still burden employees and discourage working from home,” said Congressman Jim Himes. “There is no good reason why residents of Connecticut who work from home offices in Connecticut should be paying taxes to any other state. It is time to modernize our laws to support an evolving workforce and protect Americans from unfair over-taxation.”
“Every dollar hard-working Granite Staters can keep in their pocket matters, and workers must be protected from unfair, out-of-state taxes,” said Congressman Chris Pappas. “The Multi-State Worker Tax Fairness Act would protect individuals who telework for a company in a state different from the one they reside in from over-taxation. I will continue to fight for tax fairness for all.”
“The Multi-State Worker Tax Fairness Act is essential for cutting taxes and ensuring people in New Jersey keep more of their hard-earned dollars where they belong — in their own pockets,” said Congressman Josh Gottheimer. “By clarifying that they should only pay taxes to the state where they live and work, we’re not just protecting their financial well-being — we’re ensuring they aren’t double taxed by a state they don’t even set foot in.”
You can view the full text of the bill here.