Income Tax Calculator

• This only accounts for current player NHL salary and signing bonuses, it does not include performance bonus, buyout or termination income
• Players are assumed to have been paid at the majors level for all duty days (days considered working for tax purposes) for their current team

• Duty days:
  • Begin at the start of training camp, which for this tool is assumed to be 20 days prior to season start (Exceptions: Arizona & Michigan duty days begin at the start of the season)
  • Playoffs are considered duty days for teams still competing; however, these days are not considered for this calculator
• Residents:
  • All players are assumed to be residents of their local region
  • Washington: The majority of Capitals players reside in Virginia (where the practice facility is located) and are therefore considered Virginia residents for state and city taxes
  • Philadephia: The majority of Flyers players reside in New Jersey (where the practice facility is located) and are therefore considered New Jersey residents for state taxes
  • New York Islanders: The Islanders practice on Long Island. The players do not live in New York City and therefore are not subject to the NYC city tax rate
  • New York Rangers: The majority of Rangers players live outside of New York City and therefore by default we do not incorporate the NYC city tax rate

• Federal Jurisdiction:
  • American residents are not subject to Canadian taxes; therefore, duty days while in Canada are taxed at their local rate
  • Canadian residents are not subject to American taxes; therefore, duty days while in the USA are taxed at their local rate. The current exchange rate is used to convert the respective income to CAD to estimate the tax rate (because all players are paid in USD)
• State/Provincial Jurisdiction:
  • Provincial: Residents in Canada are not subject to "jock taxes" and therefore are taxed at their location of residence (assumed to be their teams home province)
  • State: Residents of American teams are subject to "jock taxes", and are therefore taxed for their duty days at the local jurisdiction.
    • Reciprocity agreements: Simplified by assuming the tax rate for the player is the maximum of: a) The local tax rate, or b) The players state residence tax rate (Example: A player visiting Florida (no State tax) from California, will be taxed at the California rates for their duty days in Florida)
• City Income Tax:
  • City tax rates are only applied to local residents
• Additional American Federal Rates (As of 2019):
  • Medicare Tax: Flat 1.45%
  • Medicare Surtax: 0.9% on income above $200,000 ($250,000 for married players: for this calculator single is assumed)
  • Social Security: 6.2% for income ranging from $0 - $132,900

Additional Fees

$11,500,000 ($0 Signing Bonus) Income Tax Estimate

Summary

TEAM	BASE SALARY	SIGNING BONUS	ESCROW	AGENT FEE	TOTAL INCOME	ESTIMATED EFFECTIVE TAX RATE	TAX PAID	NET INCOME
Florida Panthers	$11,500,000	$0	$0	$0	$11,500,000	42.73%	$4,914,287	$6,585,713

Jurisdiction Calculation