"Jock Tax"- how are your favorite pro athletes getting hit up?

[charknicks]

We all know that pro athletes (NBA, NHL, NFL, MLB) make lots of money. The average NBA player makes $5 million/ year. Crazy money.

So starting in 1991, when the Bulls beat the Lakers in the NBA finals, the state of California decided to hit Jordan and the Bulls with this "jock tax" for playing in their state.

Since then, pretty much all states have figured this is a good way to get extra tax money from athletes (and entertainers). Now, its widespread in each state pretty much.

The big talk is about Dwight Howard signing in LA vs. Texas. If Dwight were to stay with the Lakers, he would pay MUCH more in taxes (12.3%- CA) compared to Texas (no state tax). If Dwight were to stay with the Lakers, his tax bill would be as follows:

Dwight Howard- 5 years, $107 million ($21.4 million/ year) ($260,975.60/ game)
$8,544,562.90 (Federal tax) (39.6%)
$2,009,879.80 (State taxes)

“Jock Tax”- paying state income taxes on games played in each state
Oregon (2/82) $521,951.21 9.9% $51,673.17
Utah (1/82) $260,975.60 5.0% $13,048.78
California (49/82) $12,787,804.87 12.3% $1,572900.00
Tennessee (2/82) $521,951.21 $2,500/ game (“privilege tax”) $5,000

Texas (5/82) $1,304,878 No State Income Tax

Louisiana (2/82) $521,951.21 6.0% $31,317.07
Oklahoma (2/82) $521,951.21 5.25% $27,402.43
Ohio (1/82) $260,975.60 5.925% $15,462.80
New York (2/82) $521,951.21 8.82% $46,036.10
Washington DC (1/82) $260,975.60 8.95% $23,357.31
Pennsylvania (1/82) $260,975.60 3.07% $8,011.95
Colorado (2/82) $521,951.21 4.63% $24,166.34
Canada(1 /82) $260,975.60 9.15% $23,879.26
Illinois (1/82) $260,975.60 5% $13,048.78
Arizona (2/82) $521,951.21 4.54% $23,696.58
Minnesota (2/82) $521,951.21 7.85% $40,973.17
Michigan (1/82) $260,975.60 4.25% $11,091.46
Massachusetts (1/82) $260,975.60 5.3% $13,831.70
N. Carolina (1/82) $260,975.60 7.75% $20,225.60
Florida (2/82) $521,951.21 No State Income Tax
Georgia (1/82) $260,975.60 6% $15,658.53
Indiana (1/82) $260,975.60 3.4% $8,873.17
Wisconsin (1/82) $260,975.60 7.75% $20,225.60


If Dwight goes to Texas, he would pay about $1.3 million less/ year in income tax.
Do you cats think the "jock tax" is worth staying in LA vs. going to Dallas/ Houston?

 

[who_better_than_me]

How come this is the first we heard a out this so call jock tax. In an era where's all info is available, just found it weird that's it's just coming out recently during the DwightMare decision

 

[charknicks]

The jock tax thing came out during the LeBron decision too. It just wasnt as big a story as him leaving his hometown team.

 

[Jplaya2023]

We all know that pro athletes (NBA, NHL, NFL, MLB) make lots of money. The average NBA player makes $5 million/ year. Crazy money.

So starting in 1991, when the Bulls beat the Lakers in the NBA finals, the state of California decided to hit Jordan and the Bulls with this "jock tax" for playing in their state.

Since then, pretty much all states have figured this is a good way to get extra tax money from athletes (and entertainers). Now, its widespread in each state pretty much.

The big talk is about Dwight Howard signing in LA vs. Texas. If Dwight were to stay with the Lakers, he would pay MUCH more in taxes (12.3%- CA) compared to Texas (no state tax). If Dwight were to stay with the Lakers, his tax bill would be as follows:

Dwight Howard- 5 years, $107 million ($21.4 million/ year) ($260,975.60/ game)
$8,544,562.90 (Federal tax) (39.6%)
$2,009,879.80 (State taxes)

“Jock Tax”- paying state income taxes on games played in each state
Oregon (2/82) $521,951.21 9.9% $51,673.17
Utah (1/82) $260,975.60 5.0% $13,048.78
California (49/82) $12,787,804.87 12.3% $1,572900.00
Tennessee (2/82) $521,951.21 $2,500/ game (“privilege tax”) $5,000

Texas (5/82) $1,304,878 No State Income Tax

Louisiana (2/82) $521,951.21 6.0% $31,317.07
Oklahoma (2/82) $521,951.21 5.25% $27,402.43
Ohio (1/82) $260,975.60 5.925% $15,462.80
New York (2/82) $521,951.21 8.82% $46,036.10
Washington DC (1/82) $260,975.60 8.95% $23,357.31
Pennsylvania (1/82) $260,975.60 3.07% $8,011.95
Colorado (2/82) $521,951.21 4.63% $24,166.34
Canada(1 /82) $260,975.60 9.15% $23,879.26
Illinois (1/82) $260,975.60 5% $13,048.78
Arizona (2/82) $521,951.21 4.54% $23,696.58
Minnesota (2/82) $521,951.21 7.85% $40,973.17
Michigan (1/82) $260,975.60 4.25% $11,091.46
Massachusetts (1/82) $260,975.60 5.3% $13,831.70
N. Carolina (1/82) $260,975.60 7.75% $20,225.60
Florida (2/82) $521,951.21 No State Income Tax
Georgia (1/82) $260,975.60 6% $15,658.53
Indiana (1/82) $260,975.60 3.4% $8,873.17
Wisconsin (1/82) $260,975.60 7.75% $20,225.60


If Dwight goes to Texas, he would pay about $1.3 million less/ year in income tax.
Do you cats think the "jock tax" is worth staying in LA vs. going to Dallas/ Houston?

he better have his agent break down them child support numbers per california and texas

 

[PortCityProphet]

I thought this was widely known

 

[charknicks]

he better have his agent break down them child support numbers per california and texas

Bruh, those women are getting their cut, regardless of what state he is in!

 

[detroitwalt]

I always wondered how states could get away with this shyt.

My job sends me out of state a lot but I never have to pay taxes. Obviously I know they get a lot more out of the athletes than they would for me but I'm just wondering how that is anywhere close to being fair.

 

[locoloco87]

Bruh, those women are getting their cut, regardless of what state he is in!

lol no they are not...california is a different beast when it come to child support

 

[who_better_than_me]

So if an athlete do they still have to pay he tax if they travel without he team but don't perform.


Are there any other taxes out there we dont know about that athletes have to deal with?

 

[Goatpoacher]

he better have his agent break down them child support numbers per california and texas

Child support issues remain in one jurisdiction. Unless he has more children out of wedlock in a different state.

 

[threattonature]

I just wonder if the owners get taxed the same considering they are making profit from the games.

 

[Listen]

I always wondered how states could get away with this shyt.

My job sends me out of state a lot but I never have to pay taxes. Obviously I know they get a lot more out of the athletes than they would for me but I'm just wondering how that is anywhere close to being fair.

Technically, each state I preform services in for my company could requie me to add them to my taxes and fill out a non permanent resident state tax return.

I live in New Hampshire, whihc has no state tax and no income tax, and work in Mass, which has both. So to pay less in Mass state taxes, I break down exactly how many days I work in the state of mass versus my home office in NH, and I only have to pay state taxes for services I perform in that state.