Multi-State Worker Tax Fairness Act of 2026
Latest action (24 Aug 2026): Introduced
What this bill does
H.R. 10142, the Multi-State Worker Tax Fairness Act of 2026, would amend federal law governing state taxation to restrict how states tax income earned by nonresident workers. Under the bill, a state could only treat a nonresident individual as "present" or "working" there for tax purposes if the person is physically present in that state during the relevant time. States would be barred from taxing a nonresident's income for periods when that person is physically present in a different state, and could not apply "convenience of the employer" rules to count home-based work in another state as work performed in the taxing state. The bill also limits states from overriding an employer's determination of what counts as work time, nonworking time, or unpaid time.
The bill primarily affects people who live in one state but work for an employer based in another—commonly called multi-state or cross-border commuters and telecommuters—along with the states that currently tax such nonresidents' income based on the employer's location rather than the worker's physical location. It does not address taxation of business entities, unearned income such as dividends or interest, or other non-income taxes.
The bill was introduced in the House on August 24, 2026, by Rep. Jim Himes along with two cosponsors, and referred to the House Committee on the Judiciary. As an introduced bill, it has not yet received committee action, floor votes, or Senate consideration, and would need to pass both chambers and be signed into law before taking effect.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
This bill is in the first stage of the legislative process. It was introduced into Congress on August 24, 2026. It will typically be considered by committee next before it is possibly sent on to the House or Senate as a whole.
Common questions
- What does H.R. 10142 do?
- H.R. 10142, the Multi-State Worker Tax Fairness Act of 2026, would amend federal law governing state taxation to restrict how states tax income earned by nonresident workers. Under the bill, a state could only treat a nonresident individual as "present" or "working" there for tax purposes if the person is physically present in that state during the relevant time. States would be barred from taxing a nonresident's income for periods when that person is physically present in a different state, and could not apply "convenience of the employer" rules to count home-based work in another state as work performed in the taxing state. The bill also limits states from overriding an employer's determination of what counts as work time, nonworking time, or unpaid time. The bill primarily affects people who live in one state but work for an employer based in another—commonly called multi-state or cross-border commuters and telecommuters—along with the states that currently tax such nonresidents' income based on the employer's location rather than the worker's physical location. It does not address taxation of business entities, unearned income such as dividends or interest, or other non-income taxes. The bill was introduced in the House on August 24, 2026, by Rep. Jim Himes along with two cosponsors, and referred to the House Committee on the Judiciary. As an introduced bill, it has not yet received committee action, floor votes, or Senate consideration, and would need to pass both chambers and be signed into law before taking effect.
- Has H.R. 10142 become law?
- Not yet. As of 24 Aug 2026, H.R. 10142 is introduced.
- Who sponsored H.R. 10142?
- H.R. 10142 was sponsored by Rep. James “Jim” Himes [D-CT4] (Democrat-CT), with 2 cosponsors.
- What's the latest action on H.R. 10142?
- Introduced (24 Aug 2026).
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