No state taxes
It may not seem like a big deal to many people, but it should be to free agent stars looking to sign a major deal. Now, this part of the article will call for some math, so if you need a cup of coffee or Dr. Pepper before you continue, get it. I will wait.
Yep, waiting. Just sitting here until you are ready.
Oh, you are back. Hey! Okay. Break out the numbers.
For ease of mind, let’s go with the contract of P.K. Subban. Currently, he enjoys a salary of $9 million, with a bonus of $2 million. That makes $11 million total. Still with me?
So, of that $11 million, Subban pays (or is withheld, not the place for that debate) $0 annually to the State of Tennessee in income taxes while playing for the Nashville Predators. If he were with the Chicago Blackhawks, the withholding would be $412,500 (3.75% rate). Or $1,463,000 (13.3% rate) in California. Or $660,000 in St. Louis (6% rate).
All said, taking home 68% of your check after Federal taxes are withheld is far better than 47% if Subban lived in Chicago. You can buy a lot of catfish with that money.