Actually paying income taxes where you live kinda makes sense, since those taxes are used mostly for local services and such. Alternative is to merge provinces and just have one national level system.
And different state populations have different overall philosophies about how much and how they tax, the types and levels of services they provide, etc. In the US, eliminating state taxation authority is effectively taking a lot or power away from states and giving it to the federal government which... isn't happening. Certainly not short of constitutional amendment(s).