2024 Rank: 49
2023 Rank: 45
Alabama comes in as the second-lowest ranked state due to a lack of filing or withholding thresholds, no reciprocity agreements, and a damaging “convenience of the employer” rule.
Category | Current Law | Score | Total Possible |
Filing threshold | Global wage threshold | 0 | 10 |
Reciprocity agreements | None | 0 | 10 |
Convenience of the employer rule | Full | -5 | 0 |
Individual Income Tax Code | 2.4 | 5 | |
Withholding threshold | None | 0 | 10 |
Total Score | -2.6 | 35 |
Ways to Improve:
- Pass filing and withholding thresholds of greater than 30 days
- Seek reciprocity agreements with:
- Georgia: 26.11 percent of incoming commuters
- Mississippi: 20.02 percent
- Repeal convenience of the employer rule
For further ideas for how your state could improve, see our Example Remote Work Provision.
Read the report here, or click below to read how your state performs on the remote worker index.
