Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/335635 
Year of Publication: 
2026
Series/Report no.: 
GLO Discussion Paper No. 1708
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
The taxing authority of subnational governments is limited by the geographic location of individuals and economic activity. The rise of telework decouples a worker's residence from the employer's location, creating challenges for personal income taxes, corporate income taxes, and unemployment insurance. Using Census data, we show that teleworkers are more likely than non-teleworkers to move interstate and realize larger reductions in their state tax burdens from a move. Motivated by this evidence, we evaluate alternative principles for sourcing labor income to the state of residence, the employer, or work and discuss how remote work reshapes subnational tax bases.
Subjects: 
telework
work-from-home
income tax
sales tax
property tax
sourcing rules
migration
JEL: 
H24
H25
H71
J21
J68
R51
Document Type: 
Working Paper

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