Fix the income tax debate

[Louie the Blue]

IRS didn't change that. That's a state/municipality thing. Federal tax is simply on what you claim as income they can't delineate where you did it unless it is out of country. That's why California is having issues with its taxation, because athletes are simply living out of state, but working in state.

Your residency doesn't impact your income tax. Where you physically work does. If you're a Kings player playing 41 games in Crypto.com Arena, you're taxed for 41 paychecks for playing in LA. If you play 1 game in NY, you're taxed for 1 game in NY. Etc.

 

[Salsero1]

It would help teams combat the "state tax" issue though. Ok cool Florida lets you take an extra 3M in take home cash ? We can be a little flexible and go a bit over.


Maybe the 20M i proposed is too much, drop it to 10M if you want or even 5M.

Ok, how do you make it up to Florida for endorsements, signing bonuses, or O6 prestige? Is this not supposed to be all even and equal?

 

[Louie the Blue]

It would help teams combat the "state tax" issue though. Ok cool Florida lets you take an extra 3M in take home cash ? We can be a little flexible and go a bit over.


Maybe the 20M i proposed is too much, drop it to 10M if you want or even 5M.

If the league truly cared about combatting the state tax issue they'd adjust each team's actual salary cap based by on local state income taxes, with some teams being able to spend more while some would spend less with players take home salaries being all the same.

But that isn't really an issue.

 

[eojsmada]

Your residency doesn't impact your income tax. Where you physically work does. If you're a Kings player playing 41 games in Crypto.com Arena, you're taxed for 41 paychecks for playing in LA. If you play 1 game in NY, you're taxed for 1 game in NY. Etc.

That's a state thing...not an IRS thing

 

[Drytoast]

2014 study

Study: 57% of NHL Free Agents Went to Teams with Lower Taxes - Americans for Tax Reform

WASHINGTON, D.C. -- A new study jointly-released by the Canadian Taxpayers Federation (CTF) and Americans for Tax Reform (ATR) reveals that of the 123

atr.org

2024 article

NHL free agency shows teams in states with no income tax have an advantage

AP Hockey Writer When the Tampa Bay Lightning made moves at the NHL draft to clear salary cap space, general manager Julien BriseBois hoped a variety of factors would entice players to sign as free agents. One, of course, was the organization’s penchant for winning and the talent already on the...

kvia.com

2026 article detailing this

NHL Teams With No State Tax: What Players Actually Save

Playing for an NHL team in a no-tax state saves money, but the jock tax, signing bonuses, and federal rules still shape what players actually keep.

legalclarity.org

"To put that in dollar terms: a player earning $8 million per year on the Tampa Bay Lightning pays no Florida state tax on roughly $4.4 to $4.8 million of salary attributed to home duty days. A comparable player on the New York Rangers has that same chunk of income taxed by New York. Even at an effective state rate well below the top bracket, the difference can exceed $300,000 in a single season. Over a four-year contract, the gap easily reaches seven figures."

2025 Brad Marchand confirmed it

Marchand: Taxes Helped, Not Only Reason He’s With Florida Panthers

Florida panthers forward brad marchand talked about why he re-signed with team after winning stanley cup, boston bruins, state income tax

floridahockeynow.com

“If we were not in a non-tax state, it wouldn’t have worked out probably for two [of the three] guys. Two guys probably would be leaving in that situation"

I got about half a dozen idiots in this thread gripping hard on a clear advantage when they should just be saying "sure...let's remove the advantage our teams are just better ran anyways"

But w/e

 

[Dr Jan Itor]

If you don't have a solution that factors in:

• Deducting states taxes from federal
• Non-state tax teams playing 20-30 games in tax states (and tax state teams playing ~10 games in non-tax states)
• Property taxes
• Probably something else I'm not thinking of

Then you don't have a solution.

 

[Louie the Blue]

That's a state thing...not an IRS thing

I am aware.

 

[SomeDude]

I suggested something once years ago, I'll briefly mention it again. Originally I had mentioned it because of the LTIR loophole which has since been closed.

Luxury tax, similar to the NBA. Keep the cap the way it is, add a luxury tax with a limit.

For example, cap is 113M, all teams have access to another say 15-20M

For going up to 5M over the cap, teams would pay 50% that amount in luxury tax (Team X goes 5M over the cap, they pay 2.5M in tax)

For going 5.1M to 10M over the cap, teams would pay 75% that amount in luxury tax. (Team X goes 10M over, they pay 7.5M in tax)

For going above 10M over the cap, teams would pay 100% that amount in luxury tax (Team X goes 20M over, they pay 20M in tax)


That tax money is then accumulated throughout the league and distributed among the lowest earners (kind of like revenue sharing)


It allows team to spend a bit more if they have to, teams can keep homegrown players, they can offer the extra year at a higher price if they want

It wouldn't just benefit the rich teams, smaller market teams would be given X amount of extra cash, which they can now spend on their roster as well

How about the rich teams just invest in facilities and staff upgrades to become more attractive to players?

No fan of the sport should want a luxury tax that rewards cheap owners that just want to have a cash generating horrible product or rich owners who buy any player that shows any semblance of above average talent. This is why the MLB is finally crashing and is going to hopefully lose a season to help fix itself.

 

[Louie the Blue]

If you don't have a solution that factors in:

• Deducting states taxes from federal
• Non-state tax teams playing 20-30 games in tax states (and tax state teams playing ~10 games in non-tax states)
• Property taxes
• Probably something else I'm not thinking of

Then you don't have a solution.

If the league wanted to be absolutely the most fair they'd adjust the cap on a team and state basis for all teams to have verbatim the same amount of money going directly to the players' pockets. But that is not realistically practical and there's no incentive for the owners to do that.

 

[Salsero1]

2014 study

Study: 57% of NHL Free Agents Went to Teams with Lower Taxes - Americans for Tax Reform

WASHINGTON, D.C. -- A new study jointly-released by the Canadian Taxpayers Federation (CTF) and Americans for Tax Reform (ATR) reveals that of the 123

atr.org

2024 article

NHL free agency shows teams in states with no income tax have an advantage

AP Hockey Writer When the Tampa Bay Lightning made moves at the NHL draft to clear salary cap space, general manager Julien BriseBois hoped a variety of factors would entice players to sign as free agents. One, of course, was the organization’s penchant for winning and the talent already on the...

kvia.com

2026 article detailing this

NHL Teams With No State Tax: What Players Actually Save

Playing for an NHL team in a no-tax state saves money, but the jock tax, signing bonuses, and federal rules still shape what players actually keep.

legalclarity.org

2025 Brad Marchand confirmed it

Marchand: Taxes Helped, Not Only Reason He’s With Florida Panthers

Florida panthers forward brad marchand talked about why he re-signed with team after winning stanley cup, boston bruins, state income tax

floridahockeynow.com

“If we were not in a non-tax state, it wouldn’t have worked out probably for two [of the three] guys. Two guys probably would be leaving in that situation"

I got about half a dozen idiots in this thread gripping hard on a clear advantage when they should just be saying "sure...let's remove the advantage our teams are just better ran anyways"

But w/e

And we've got one idiot griping because daddy cant buy him a cup.

 

[Drytoast]

And we've got one idiot griping because daddy cant buy him a cup.

"i need the tax advantage waaaaaaa"

"i don't like it when you post links and quotes and math to prove how it's an advantage....waaaaaaaa"

"i'll just pivot and blame the leafs somehow...waaaaaaaa"

lol. that's you fella.

 

[joepeps]

My example was an extremely simplified example which actually favors your argument. Once you really dive into things, because it's much more nuanced and likely moves the other direction away from you, you're probably not going to want me to.

I think that there is absolutely a mathematical benefit, but it's nowhere close to what you're thinking it is, and highly likely doesn't require any rule changes.

if it wasn't an issue, why do players talk about it and say its an issue?

Why do players ask for 13.5 14 mil from Toronto but take 10 11 12 from a no state tax team??? HMMMMM I wonder what the difference is?

 

[joepeps]

Couple of things:
1) You're taking the theoretical difference for "Star Players" making $10M per year - and then projecting that across the entire roster? Why would that be reasonable?
2) We should only be talking about UFA eligible players. In practice, only UFA years are "open market" eligible where teams are competing for players.

true, you are right in that... but technically a team can do this over many years and get a UFA team or RFA team of 15 players that do this.

 

[Dr Jan Itor]

if it wasn't an issue, why do players talk about it and say its an issue?

Why do players ask for 13.5 14 mil from Toronto but take 10 11 12 from a no state tax team??? HMMMMM I wonder what the difference is?

What's an example of a player that asked for $13.5M from Toronto and then took $10M somewhere else? I may not be up to speed on all of those situations.

 

[Salsero1]

"i need the tax advantage waaaaaaa"

I dont need anything guy. It's sad to have so much wrapped around a bunch of guys who don't know you winning a shiny trophy you'll never touch. Touch some grass

 

[Golden_Jet]

The first ten years of the cap era had to bleed out the remaining pre cap contracts.

No that’s false.

Each pre cap contract was reduced by 25%, when the cap was implemented.

 

[Louie the Blue]

if it wasn't an issue, why do players talk about it and say its an issue?

Why do players ask for 13.5 14 mil from Toronto but take 10 11 12 from a no state tax team??? HMMMMM I wonder what the difference is?

There is more opportunity to earn money elsewhere through advertising in the U.S. and four teams in no tax states are currently viewed as contenders while the Leafs are not?

 

[Drytoast]

There is more opportunity to earn money elsewhere through advertising in the U.S. and four teams in no tax states are currently viewed as contenders while the Leafs are not?

Both the Leafs and Panthers had incredibly bad seasons.

Larkin put three teams on his list...

 

[joepeps]

There is more opportunity to earn money elsewhere through advertising in the U.S. and four teams in no tax states are currently viewed as contenders while the Leafs are not?

lol the TOP ad making players are almost all Canadian in Canadian markets or traditional hockey markets.

USA doesn't give a shit about hockey, its like the 6th-9th sport.

College sports are more popular for the most part.

 

[CupsOverCash]

Didn’t Carolina just win the Cup being 14 mil under the Cap?

Carolina is an excellent example on how to run a franchise. Others should stop whining and take note.

 

[Louie the Blue]

Both the Leafs and Panthers had incredibly bad seasons.

Larkin put three teams on his list...

The Panthers had a bad season in which their top players were injured and came off a string of 3 consecutive SCF appearances and 2 Cups.

The Leafs were also injured, but they are not coming off that run.

lol the TOP ad making players are almost all Canadian in Canadian markets or traditional hockey markets.

USA doesn't give a shit about hockey, its like the 6th-9th sport.

College sports are more popular for the most part.

Florida, Tampa, and Dallas are not small markets from a DMA perspective. Nashville is more viewed from a strong regional perspective for the South. Vegas has the casinos backing it while Seattle is backed by tech.

College tends to be more popular, but not in the Northeast.

 

[Skinnyjimmy08]

Carolina is an excellent example on how to run a franchise. Others should stop whining and take note.

Nooooo cause NOW jealous rival fans are saying Carolina is a “barely taxed state” lol… this thread is unreal to read and see the saltiness and jealousy of franchises that are ran well

So many funny excuses

 

[Drytoast]

Nooooo cause NOW jealous rival fans are saying Carolina is a “barely taxed state” lol… this thread is unreal to read and see the saltiness and jealousy of franchises that are ran well

So many funny excuses

"waaaaaaaaaaa" "I don't like math or player quotes or detailed articles explaining it! waaaaaaaaaaaa"

 

[joepeps]

What's an example of a player that asked for $13.5M from Toronto and then took $10M somewhere else? I may not be up to speed on all of those situations.

I was using an example but Marner was offered 13.5 or 14 mil in Toronto and took 12 in Vegas.

but theres other player like Rantanen wanting 13 14 from Colorado or Carolina but took 12 in Dallas.

 

[CupsOverCash]

Nooooo cause NOW jealous rival fans are saying Carolina is a “barely taxed state” lol… this thread is unreal to read and see the saltiness and jealousy of franchises that are ran well

So many funny excuses

Yea people would rather complain than do the right thing. It's easier. The other thing that's missed in this is people vote for the taxes. A lot of people complaining about it probably support and voted for the taxes. Can't make other places be like you.