How State Taxes Are Factored Into Contracts

the sportsterPhoto: The Sportster

CapFriendly.com tweeted on Tuesday afternoon how income taxes are considered in contracts. This came after Tampa Bay Lightning forward Nikita Kucherov signed an eight-year contract extension worth $76 million ($9.5 million AAV) on Tuesday. Kucherov, who was third in the NHL with 100 points this season, could have become an unrestricted free agent. 

This relates to Kucherov’s contract because Florida has no income tax.

Tampa Bay along with the Nashville Predators, Dallas Stars, Florida Panthers and the Vegas Golden Knights have the highest take-home pay in the league while the Ottawa Senators and Toronto Maple Leafs have the lowest.

The Washington Capitals (counted as Virginia) have 11th lowest in the league with a federal tax rate of 39.14% and a state rate of 5.75%. The estimated tax rate is 47.87%, the tax paid by the Capitals is $4,547,370, and the net salary is $4,952,630.

Here is how the Capitals stack up to the rest of the league.

By Harrison Brown

About Harrison Brown

Harrison is a diehard Caps fan and a hockey fanatic with a passion for sports writing. He attended his first game at age 8 and has been a season ticket holder since the 2010-2011 season. His fondest Caps memory was seeing T.J. Oshie's hat-trick​ during Game 1 of the Caps' second round playoff series against Pittsburgh in 2016. In his spare time, he enjoys travel, photography, and hanging out with his two dogs. Follow Harrison on Twitter @HarrisonB927077
This entry was posted in Free Agency, News, NHL, Roster Moves, Salary Cap, Teams and tagged , , , , , . Bookmark the permalink.

One Response to How State Taxes Are Factored Into Contracts

  1. Anonymous says:

    Professional athletes pay taxes in every state in which they play. It certainly helps to play most of your games in states like Florida Tennessee or Nevada, but these metropolitan division players are forking out plenty of cash to high tax states up and down the east coast.

    Like

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