If there’s one annoying part of free agency speculation that’s emerged over the last few years it’s the constant talk about how taxes factor in to a player’s decision on where to go. At best someone casually mentions it as a potential draw to low or no-tax states like Florida or Nevada, and at worst it manifests itself in a hilariously false oversimplification of how this all works. No joke, I’ve heard people claim that Steven Stamkos turned down the Leafs for the Lightning because in Florida he can take home his entire $8.5-million per year due to that state carrying no personal income tax.
That was bad. This isn’t much better:
How important is it Vegas has no state income tax?
On a $5.9M/yr deal William Karlsson will take home an estimated $3.75 million after taxes in Vegas.
If he signed the same deal in other cities this is what he’d bring home:
TOR/MTL: $2.77MLA/ANA/SJ: $2.99MNY: $3.02
— Jesse Granger (@JesseGranger_) June 23, 2019
Want to know how you get these numbers? Simply plug in the federal tax rate in the States (around 36% for someone making $5.9-million) and let ‘er rip. Add in …
Author: Ryan Fancey / The Leafs Nation