The “jock tax” is a way for states to make some extra money when high-paid athletes play in their states. California has the highest “jock tax” at 13.3%, the only state with a tax over 10%. In fact not all states even have a jock tax as Texas and Florida do not impose one at all.
In 2013, the state collected $229 million from the tax from athletes of all stripes playing games in California; no drop in the bucket. Below a breakdown on where that revenue comes from the Mercury article.
– Major League Baseball $85.2 million
– NFL $54.2 million
– NBA $51 million
– NHL $35.7 million
– WNBA $600,000
– Soccer $2.5 million
And since the Super Bowl is in California for the first time since Super Bowl 37 in 2003, it should be a windfall for the state, and an interesting night for Cam Newton’s checkbook. According to the San Jose Mercury, Newton will have to pay $130,000 in jock tax from the Super Bowl and games in Oakland and Los Angeles later this year (assuming the former stays there). Newton, and any other Panther or Bronco that wins on Super Sunday, will make $102,000 for playing in the game.
With the return of the NFL to Los Angeles, as well as a burgeoning Warriors dynasty and the LA Kings return to prominence, Sacramento figures to be making some coin from the jock tax this year and into the future as additional post season games pad the amount taxed on athletes. So if you were annoyed with the growing television revenue fueling athlete salaries there is a silver lining in that you’re state is likely getting some of that money back.
