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Where are NFL players taxed?

Posted on 3/11/19 at 1:12 pm
Posted by Lsujacket66
Member since Dec 2010
4792 posts
Posted on 3/11/19 at 1:12 pm
Are they taxed based on where their team is or what state they live in most of the year?

Haven’t seen much about it in the NFL but the Bryce Harper contract hinges on Cali state taxes being so high and made me think if players pay taxes based on where the teams are, California players aren’t getting the value they should be getting
Posted by Laaz2750
Los Angeles
Member since Aug 2008
8381 posts
Posted on 3/11/19 at 1:14 pm to
I believe their game pay is taxed at the rate of the state where each game is played.
Posted by TechDawg2007
Bawville
Member since Nov 2007
32249 posts
Posted on 3/11/19 at 1:15 pm to
quote:

I believe their game pay is taxed at the rate of the state where each game is played.
This is correct
Posted by jbeard
Member since Nov 2007
769 posts
Posted on 3/11/19 at 1:29 pm to
Not sure it makes a big difference in Harper case. California has the 5th highest state and local tax rate. Pennsylvania is 11th, so not a huge difference.
Posted by Covingtontiger77
Member since Dec 2015
10267 posts
Posted on 3/11/19 at 1:34 pm to
quote:

Pennsylvania is 11th, so not a huge difference.



This is incorrect.

PA has an across the board 3% state income tax rate foo all earners in PA.

CA has a 13% State max rate that would apply to Harper. It’s acrually 9% if you are single and make just $56,000 and if you are married then you and your spouse can still be in the 9% bracket if your household income doesn’t exceed $112,000.

It is estimated that by Harper signing with Philly, he will save approximately $50,000,000 in taxes over the life of this contract, as opposed to signing a similar deal in CA.


In CA, you factor in 81 home games in CA. You also factor that some of his away games are also in CA against the Angels and:or Dodgers.


He made the right move.
This post was edited on 3/11/19 at 1:37 pm
Posted by tigerterrace
Mobile, Alabama
Member since Sep 2016
3397 posts
Posted on 3/11/19 at 2:25 pm to
To me the by the game rule has always been insane and I have seen it used for the reason that other players have not wanted to sign with California teams.

So I would assume that players can get around this in some way by getting a bigger signing bonus and camp bonuses.

So say for instance if a player is getting 3 million a season, but got 1.4 million as a signing bonus then his contract or per game amount is 1.6 million/16 or $100K a game to be taxed on.

So 100k taxed at New Orleans rate and then 100K to be taxed at San Fran Rate and so on.

Posted by MMauler
Member since Jun 2013
19216 posts
Posted on 3/11/19 at 2:41 pm to
quote:

PA has an across the board 3% state income tax rate foo all earners in PA.


But, Philadelphia has it's own tax - as does every other jurisdiction in the state of Pennsylvania.

The Philadelphia tax is 3.8809%. See Page 3.

But, the above poster is correct in that Pennsylvania/Philadelphia will only be taxing 1/2 of Bryce's wages at 6.8907. The other 1/2 will be taxed in the jurisdictions in which the Phillies play.

I did read an article recently where one athlete has challenged the way states tax an athlete's income. I can't remember who it was. However, the prevailing rule of thump is that each game is taxed based upon the total of games played. So, if Bryce plays 6 games in N.Y., then N.Y. taxes 6/162 of Bryce's salary.

The player who challenged this "rule" is arguing that it should not be done on a game-by-game basis but rather on a total time worked basis.

So, all the time put in training - especially Spring Training should also count. So, instead of Pennsylvania getting 81/162 and N.Y. getting 6/162, some time should be allocated to Florida for Spring Training. Of course, Florida has no state income tax so all of that could go untaxed -- although the player's home state (in this Bryce's case you'd have to think this is Pennsylvania although even that could be challenged) might want to tax it all and give Bryce a credit for taxes paid in other states.

It's actually a very interesting topic.
This post was edited on 3/11/19 at 2:53 pm
Posted by Lsujacket66
Member since Dec 2010
4792 posts
Posted on 3/11/19 at 3:18 pm to
quote:

It's actually a very interesting topic.


Agreed and it seems kinda insane to tax it based on where the game is played
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