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Kiplinger
Kiplinger
Business
Kate Schubel

Could Your ZIP Code Cut Your Federal Taxes? New Bill Explains How

A photograph of a residential street lined with sunlit homes on a summer day in Tarrytown, New York, part of Rep. Mike Lawler's district.

It's a tale as old as time: If you live in a high-cost area like Long Island, San Francisco, or Seattle, your paycheck doesn't stretch nearly as far as it would in, say, Pittsburgh. Yet, the IRS taxes your income exactly the same.

A new bill from lawmakers on Capitol Hill would flip that script by linking your federal tax obligations to your home address.

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