Question

Mike Barr was an outstanding football player in college and expects to be drafted by the NFL in the first few rounds. Mike has let it be known that he would prefer to sign with a club located in Florida, Texas, or Washington. Mike sees no reason why he should have to pay state income tax on his player’s salary. Is Mike under any delusions? Explain.

Answer 1

Answer:

The answer is: Mike will have to pay state income tax even if he is signed by teams from Florida, Texas or Washington, due to Jock Taxes that are levied on professional athletes.

Explanation:

Mike could be selected by a team from Florida, Texas or Washington (6 possibilities out of 32 teams) and not pay any state income taxes for the games they play at home.

He will have to pay state income taxes for the other games his team plays outside those 3 states and Washington DC. Most states (47) collect a Jock Tax which means that professional athletes that reside outside the state must pay state income taxes when they play a visiting game in their state.