The No State Tax Myth

by | Jun 26, 2025 | General

Sometimes people say stupid things because they really want them to be true. In sports, one of the dumbest things I hear thoughtlessly repeated is “Pro athletes want to go to a place where there is no state income tax.”

Not only is this a stupid statement, it’s also a fallacy.

Think about it for a beat. If that premise were true? Why would anywhere else in the world have a sports team? Wouldn’t every team move to no tax states? Wouldn’t all of the players just come to play in those handful of states to avoid taxation? I mean, EVERY nation has taxes, and every nation breaks themselves down into provinces that also have taxes, so why wouldn’t players from a place like Wakanda come play in the US and not have to worry about state tax?

Boy, those LA Lakers and Golden State Warriors are probably crazy envious that they didn’t win their 10 titles in Florida. And the Edmonton Oilers, this season’s Stanley Cup losers? They’ll be disappointed that they get lifelong free, high quality health care to tend to their present future injuries for just 10% of their present salary unlike those Panthers players who…move back to Canada for free healthcare.

All of those sports experts analyzing the success of teams in Florida crediting the lack of a state tax? Can you explain to me the NHL veterans taking less money to play in Toronto, while also paying more taxes. Or why players in the NBA take minimum deals to play for the New York Knicks. No answer? That’s because you’re talking out your ass repeating something some dipshit sports talk jerkoff said, and sports talk guys read books about as often as gorillas.

And do all of those guys signing minimum wage deals in high tax Toronto get some kind of tax exemption? Nah, they don’t. It’s almost like all of those “No State Tax” experts are absolutely full of shit and on top of that? Just fucking ignorantly stupid.

Plus, state tax doesn’t count in a salary cap, yet you never see players taking less money to play somewhere because it’s what they’d be making elsewhere due to taxes? While making the team have more money to acquire better players and help win more often? Because it’s the dollar amount these guys are about, not the taxes.

Must be related to my ex wife!
Players still have to respond to Federal taxation, with the benefits taxation brings like social security and health care in old age, so it’s not like they avoid a bulk of taxes, right?

Wrong.

You’re ignoring the financial experts that help multimillionaires use different savings vehicles and tax shelters to avoid paying taxes on all of that money. Even something as simple as a tax deferred annuity means you’re lowering your tax bill this year while creating your own income in the future, or investing a signing bonus (think Juan Soto’s $75 million signing bonus in year one of his contract) creating a stream of long term capital gains, which is taxed at a rate that is about HALF of income tax.

Soto LOVES NY
In case you’re missing that math? If Juan Soto took that $75 million signing bonus and invested it? As long as he took less than $500,000 a year from that account, his tax rate is 15%. Compare that to the 37% he would pay in income tax on his salary. He’s saving 22% by investing. If you add a 10% state tax? That means Juan Soto is paying a lower tax rate than someone making $100,000. .

“Well, what if he takes $10 million a year from investments?” Good question. His tax rate goes up 5% more. 20% long term capital gains plus 10% state income tax is still a lower tax rate than someone making $200,000 living in a no tax state.

If someone like me knows this, you think pro sports agents don’t? Plus, there are other ways to game a system. See the following graphic.

So what the tax free state tax argument boils down to is this – Is a 4-8% difference in pay enough to have geographic sway on a sports roster? This is food for thought, but we’re going to go hungry here without a dive into some basic data.

The following research (that anyone can do, by the way), is a study of the 4 major North American sports and the teams that have won their respective championships in this century. 25 years of data across 4 sports makes 100, so percentages are super easy. Wait, the NHL missed a Stanley Cup due to an owners lockout? Assholes.

Fine. 99 champions since 2000.

Here are our Data Sets (since 2000):

National Football League (NFL)

State Number of ChampionshipsState Tax Percentage
Missouri44.8%
Maryland 25.75%
Massachusetts65% 
Florida20%
Pennsylvania43%
Indiana13%
New Jersey25.5%
Louisiana14.25%
Wisconsin17.65%
Washington State10%
Colorado14.4%
California112.3%
States with taxes win 88% of Super Bowls.

Major League Baseball (MLB)

StateNumber of ChampionshipsState Tax Percentage
New York210.9%
Arizona12.5%
California612.3%
Florida10%
Massachusetts45% 
Illinois24.95%
Missouri34.8%
Pennsylvania13%
Texas30%
Washington DC110.75%
Georgia15.49%
States with taxes win 84% of the World Series.

National Basketball Association (NBA)

StateNumber of ChampionshipsState Tax Percentage
California1012.3%
Texas 50%
Michigan14.25%
Florida30%
Massachusetts35% (+ 4% millionaires tax since 2023, so 9%)
Ohio13.5%
Toronto 113.2%
Wisconsin17.65%
Colorado14.4%
Oklahoma14.75%
States with taxes win 80% of NBA Championships.

National Hockey League (NHL)

StateNumber of ChampionshipsState Tax Percentage
New Jersey25.5%
Colorado24.4%
Michigan24.25%
Florida 50%
North Carolina15.25%
California312.3%
Illinois34.95%
Massachusetts15%
Pennsylvania33%
Washington, DC110.75%
Missouri14.8%
Nevada10%
States with taxes win 76% of Stanley Cups.

Overall, states with taxes take 82% of the available chips.

More than 8 out of 10 championships across the four major American sports come from states that have taxes.

Hockey is an interesting outlier. One reason that makes hockey an outlier is that of the 4 major sports leagues, the NHL has the lowest salary cap, so players are paid the least. You could argue that when players aren’t making $25 million a year, taxes may have an impact on where players decide to play and maximize their dollars.

And you would be wrong.

Why? Drafting a player means a player has virtually no choice as to what team they will play for. So when Tampa Bay drafted Alexander Killorn, Steven Stamkos, Victor Hedman, Nikita Kucherov, Andrei Vasilevskiy, Jonathan Drouin, Brayden Point, Ondrej Palat, Vladislav Namestnikov and Tony Deangelo, the state tax wasn’t a factor of the recruitment conversation.

Same goes for the present champ Florida Panthers, which doesn’t draft too strongly (except Aaron Ekblad and Dmitri Kulikov), but is very willing to make trades with their draft picks to acquire players from other teams, such as Sam Bennett (from Calgary), Matthew Tkachuk (from Calgary), Sam Reinhart (from Buffalo), Seth Jones (from Chicago), Brad Marchand (from Boston) and Vitek Vanicek (from San Jose). Of course, Sergei Bobrovsky was a free agent signing, but he was playing for the Columbus Blue Jackets, so no matter where you go after that? You’re already winning. And they backed up the truck to pay “Bob,” so I’d argue that taxes do not entirely seem like a factor when you make the highest offer to a goalie at that point in hockey history.

The most successful Florida sport
Another factor in this equation is the number of teams per state. Texas has 8 pro teams. Florida has 9 teams. Nevada has 2, with one on the way. Tennessee has 3 pro teams. Washington State has 2 more. That’s 24 teams in total.

And the double digit taxed teams? California has 13, Toronto has 2, Washington DC has 4, and New York has 8. Sorry Jets and Giants, you play in New Jersey, so you don’t count. That’s 27 teams in total.

If you look at the championship states with the double digit state taxes versus all of the zero tax states?

Double Digit State TaxesNo State Tax States
2521
So the “players go to where there’s no state taxes” argument? The stronger argument is “players go to where the taxes are highest to win titles” because that is mathematically true.

By the way, Texas should start charging state taxes as they are a federal welfare recipient. Meaning New York and California pay for people to live in Texas. How disgusting!

We are also overlooking one of the major concepts of what makes teams win titles – soft money. Sure, you can give a Pete Alonso Jr $40 million a year, and that’s great for Pete. But why didn’t Alonso sign in a No Tax state team? Again, taxes don’t really matter to multimillionaires. What matters more is drafting, development, coaching, and scouting. Those people aren’t always paid a whole lot of money, which allows teams ANYWHERE to hire well, develop players well, and be competitive.

For example? They 1996- 2007 New York Yankees appeared in 7 World Series over 11 years, winning 5 of them. Which had more to do with that- double digit state taxes or player development?

Three states have won titles in all 4 pro sports this century – California, Massachusetts and Florida. These states have had successful teams despite the vast differences in taxation.

Take Massachusetts. In 2023 Massachusetts passed an extra tax on millionaires, boosting their personal state taxes by 4%. Almost all of their players on all teams are hit with that extra 4% of taxes. Since then? The Celtics have won an NBA title, and the Red Sox were able to sign some expensive, high quality players. The Bruins and the Patriots are rebuilding, so they get a pass on that winning thing.

And Florida? The most successful title sport in the state by far is Hockey, with 5 titles this century. Bet you didn’t see that coming, as Florida isn’t exactly a place to go ice skating outdoors.

Wisconsin has generally higher than average state taxes. Two of their teams have won titles, and the third is an annual playoff team. Is that due to high taxes? Or good drafting and coaching?

New Jersey is among the lower state taxes, and yet the Jets have been terrible for 50 years. Is that due to players saying money, or because the Jets are run like diarrhea down a marathoner’s leg?

When you look at the numbers for no tax states being more attractive for players? It’s not about team success. It’s about maximizing what a player makes for themselves, both individually and at the expense of the team and their fans. But only if they aren’t drafted by that team and have no choice as to where they go, of course. Or if they’re acquired via trade and have no say as to where they go, of course.

You want to know whyt Steven Stamkos didn’t take the $3 million in salary over 8 years to stay in Tampa Bay, and took the $32 million offered by Nashville, which also has no state tax? It’s just about more money, and NOT winning or geography?

And states with higher taxes? They often offer more for a player, but not more money. More like culture, museums, good schools, better restaurants, and basics like street lights and sanitation. Watch “Hard Knocks” to see how much the NY Jets like Broadway if you don’t believe me. These ammenities are also attractive to a player, depending on the person. It was so influential to Robinson Cano that he started a garbage pick up company in the Dominican Republic!

In short? Taxes have more to do with champions than no taxes do. So the next time you hear a person discussing how state taxes impact a player? Feel free to steal these arguments and let them know that their premise is full of shit. Just like their pants.

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1 Comment

  1. Rob Stumpf

    New Jersey is among the lower state taxes, and yet the Jets have been terrible for 50 years.<

    Thi8s is the meaningless nonsense you get when people confuse cause and effect. There are many reasons the Jets stink.

    Reply

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