It’s long been known that the tax returns of professional athletes are just about as complex as it gets. This is because not only do they have to pay income tax on their per-game earnings, but they are taxed for each game in accordance with the state in which the game is played. Suffice to say, a bit of a headache for their accountants.
All of which is precisely why both players and accountants with the Atlanta Falcons and New England Patriots will probably be looking forward to today’s Super Bowl more than most. The reason being that as Texas doesn’t collect any income tax from these events, it’s more cash in their pockets and less math to be done!
What this basically means is that for the winning team, every player can expect a tidy cash payout of $107,000. And it’s not a bad picture for the losing team either – those coming out with a loss will still pocket a full $53,000 each. And unlike last year’s event in California where it was all taxable at the standard rate of 13.3%, this year it’s all on the cards 100% tax-free!
There are only three US states where so-called ‘jock tax’ doesn’t apply. Along with Texas, Washington and Florida also impose no personal state income taxation.
Josh Martin, York Jets linebacker, told MarketWatch a short while ago that he and pretty much every player in the NFL has a real fondness for playing these tax-haven states, where they get to walk away with “heavier” checks than they otherwise might.
As New York Jets linebacker Josh Martin told MarketWatch earlier this season, players look forward to playing in these states, where “checks are a little heavier.”