When the National Taxpayers Union Foundation released its study on states’ tax policies affecting remote and mobile workers, the 2023 Remote Obligations and Mobility (ROAM) Index, one of the more notable results was the lack of clear divide between red and blue states. While the usual suspects like New York and California scored poorly and Texas and Florida scored high (by virtue of having no individual income tax), other states were not easily grouped by political ideology. One example of this phenomenon was the poor score received by Alabama, which ranked 43rd out of 50 states. Unfortunately, that doesn’t appear likely to improve soon.
If I’ve written in this space before about “convenience of the employer” rules a lot of late, it’s because they are so pernicious. These rules essentially require taxpayers who switch from working in-person in one state to working remotely in another to continue paying income taxes to the state they used to work in, not the one they currently work in.
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