LCA of a different state and working in a different state

My H1 visa will expire soon. My employer is filing for an extension and the job location is in a different state. However, the new project allows me to work from home so I want to know if there are any legal issues with your work location and LCA being in one state while you are actually residing in a different state.

Also, anything I need to watch out for from a taxation perspective? The LCA of the work location is lower than the place at which I am residing. The taxes could be around 5% higher over all.