Advantages for pro teams in no state income tax states

I have no clue. But I would bet a Taylor Swift has all money from a tour going into some sort of LLC/Corporation. A completely different game but probably does have some similarities. I would think professional golfers would be more like this as well. I assume most nfl players are W2 for their contract with football and the team they play for. Endorsements. Different story.

 

It’s most certainly not irrelevant. In most scenarios you’re taxed in both the state you work and in which you’re a resident (assuming both have income taxes and there isn’t a reciprocity agreement like between Wisconsin and Illinois). Effectively you only pay tax once, at the higher of the two tax rates (since your resident state will credit the taxes paid in another state toward your tax bill), but it does matter.

 

Can’t wait for athletes to start getting all their pay as tips.

 

look up how they structured MLB's Ohanti contract with Dodgers. It is back loaded to avoid as much state tax as possible.

Ohtani contract: State controller calls for congressional intervention on Dodger star's deferrals

The Dodgers signed Ohtani to a 10-year, $700-million-dollar deal, with Ohtani deferring $680 million until after the contract expires in 2033.

If Ohtani moves before that time, it could cost the state an estimated $98 million dollars in tax revenue.

 

I know hockey has discussed structuring salaries for this.

But mostly since Florida took over the sport

#GoBolts

 

Really only a factor in hockey. NBA only has Toronto and has a soft cap anyway, based on US dollars. Toronto is allowed to carry the Canadian equivalent to make it equal.

MLB has no cap.
NFL has no Canadian team.

NHL does factor that in and the Canadian dollar cap is higher than the US cap to make it equal.

 

I likely misphrased my response.

What I meant was that it was irrelevant relevant to his football earnings that Belichek may have lived in a lower tax state nearby, because his football earnings would be taxed in Massachusetts as that is where they played. His entire earnings may be taxed in NH but the football portion would have already been taxed at Mass state income tax rates. So in essence we agree with each other.

 

It doesn't seem to matter as much anymore. Certainly not the main consideration for any free agent these days, if it ever was.