WASHINGTON, D.C. — U.S. Representatives Josh Gottheimer (NJ-5), Jim Himes (CT-4), and Chris Pappas (NH-1) introduced legislation, the Multi-State Worker Tax Fairness Act (H.R. 10026).
The legislation establishes a uniform standard for taxing income based on physical presence in a state — ensuring that remote workers aren’t taxed by a state income earned while not physically present in that state.
For many constituents, remote work is becoming a permanent arrangement thanks to modern technology. This means that New Jersey residents employed by New York companies may never even step foot in New York. They live and work in New Jersey, relying on local resources. Their hard-earned income should benefit their community — not be funneled across state lines to a government that has no connection or accountability to them.
Out-of-state taxpayers paid New York nearly $8.8 billion in 2021 in taxes, roughly 15% of the state’s total income tax revenues. Of that, $4.3 billion came from New Jersey taxpayers.
“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,” Gottheimer said. “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.”
“Despite a pandemic-driven surge in telework, conflicting state tax rules still burden employees and discourage working from home,” Himes said. “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,” Pappas said. “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.”
This legislation builds on Gottheimer’s work to fight back against attempts to tax NJ commuters working remotely. In 2021, Gottheimer led a letter to the U.S. Treasury Secretary and IRS Commissioner asking for federal guidance to make clear that states cannot tax those who neither live nor work within their boundaries.
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