Exploring Tax Rates Around the NHL

With free agent frenzy coming to an end, the majority of players have settled to their respective teams. Now news continues to break regarding entry level contract value and the resigning of RFA’s or future UFA’s around the league. One little known factor that can affect a players decision in terms of destination is tax rates in the state, or province that they settle.

Looking at different teams tax rates can prove to be significant for maintaining net worth. It makes sense that older players just looking to make that retirement fund love going to Florida. Zero snow, 365 days of golf and the lowest tax rate in the league are pretty solid qualities for a 30-something NHLer.

Just because McDavid has already signed and his total of 100 Million is now the talk of the league, the chart below will examine his contract worth after taxes on each team. 100 million dollars carries a huge tax hit, but is also a nice round number to work with.

What we can deduce from these numbers is that McDavid would earn $8.5 Million more playing for the Stars, Panthers, Lightning, or Predators, as opposed to the Edmonton Oilers. That being said, the highest tax rates in the league can be found in California based teams (52.83%),  Eastern Conference Canadian teams such as Toronto (53.5%), Ottawa (53.5%), or Montreal (53.29%). Notably the tax rate applied in New York City, not the state of New York, sits at 52.6%. Federally there is 39.56% tax rate applied, next is the state tax of 8.8% (which applies to the Sabres, Rangers and Islanders) but as well, playing in New York City carries a tax of 4.25%. The next highest city tax in the league sits at 3.91% in Philadelphia.

If McDavid was debating (this would likely never happen but just roll with the hypotheticals) whether or not to sign a 100 million dollar contract for the Panthers or for Toronto, he would earn $46,503,967 in Toronto over the extent of his contract, or $60,443,830 playing for the Panthers. That’s a difference of $13,939,863.

Here’s the rest of the info ferda. If you want to find out the actual net pay of your favourite NHL Player, plug in their salary and find their corresponding tax rate and voila.

Team US Federal Rate State, Federal and City Rate (if Applicable) Tax Paid Net Salary
Anaheim Ducks 39.56% 52.83% $52,833,053 $47,166,947
Arizona Coyotes 39.56% 44.10% $44,095,131 $55,904,869
Boston Bruins 39.56% 44.66% $44,656,170 $55,343,830
Buffalo Sabres 39.56% 48.35% $48,354,651 $51,645,349
Calgary Flames 47.97% $47,971,315 $52,028,685
Carolina Hurricanes 39.56% 45.31% $45,306,170 $54,693,830
Chicago Blackhawks 39.56% 43.31% $43,306,170 $56,693,830
Colorado Avalanche 39.56% 44.19% $44,186,170 $55,813,830
Columbus Blue Jackets 39.56% 47.05% $47,050,842 $52,949,158
Dallas Stars 39.56% 39.56% $39,556,170 $60,443,830
Detroit Red Wings 39.56% 46.21% $46,206,170 $53,793,830
Edmonton Oilers 47.97% $47,971,315 $52,028,685
Florida Panthers 39.56% 39.56% $39,556,170 $60,443,830
Los Angeles Kings 39.56% 52.83% $52,833,053 $47,166,947
Minnesota Wild 39.56% 49.40% $49,401,967 $50,598,033
Montreal Canadiens 53.29% $53,286,666 $46,713,334
Nashville Predators 39.56% 39.56% $39,556,170 $60,443,830
New Jersey Devils 39.56% 48.51% $48,511,044 $51,488,956
New York Islanders 39.56% 48.35% $48,354,651 $51,645,349
New York Rangers 39.56% 52.60% $52,604,651 $47,395,349
Ottawa Senators 53.50% $53,496,033 $46,503,967
Philadelphia Flyers 39.56% 46.54% $46,536,170 $53,463,830
Pittsburgh Penguins 39.56% 45.63% $45,626,170 $54,373,830
San Jose Sharks 39.56% 52.83% $52,833,053 $47,166,947
St. Louis Blues 39.56% 46.56% $46,555,945 $53,444,055
Tampa Bay Lightning 39.56% 39.56% $39,556,170 $60,443,830
Toronto Maple Leafs 53.50% $53,496,033 $46,503,967
Vancouver Canucks 47.67% $47,673,028 $52,326,972
Washington Capitals (D.C.) 39.56% 48.49% $48,485,120 $51,514,880
Washington Capitals (Virginia) 39.56% 45.31% $45,305,912 $54,694,088
Winnipeg Jets 50.38% $50,376,595 $49,623,405
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