Patriots and Seahawks Confront California Tax in Super Bowl Quest
The New England Patriots and Seattle Seahawks are set to clash in Super Bowl LX this Sunday at Levi’s Stadium, located in Santa Clara, California. This event not only has implications for the championship but also brings significant tax considerations for the players involved.
California’s Tax Implications for NFL Players
California imposes the highest income tax rate in the United States, with a top marginal rate of 13.3% on income for individuals earning over $1 million. When including the State Disability Insurance, the rate can rise to 14.6%. Players must also consider the federal income tax, which is at 37% for those earning above $640,600.
Super Bowl Earnings and Tax Consequences
All players participating in the Super Bowl will receive equal postseason compensation. Winning players earn $178,000, while those on the losing team take home $103,000. This distribution of earnings is dictated by Article 37 of the NFL and NFLPA collective bargaining agreement.
- Winning players: $178,000
- Losing players: $103,000
- Additional winning bonus: $75,000 (before tax)
On top of these earnings, players also face taxation on their NFL salaries, which can lead to substantial tax liabilities. California’s jock tax system levies a percentage of player income based on their presence in the state for work-related activities—referred to as “duty days.” For NFL players, a duty day encompasses the game day, travel, practices, and meetings.
Both teams will have at least eight duty days in California due to their travel schedule. Future games in 2026 against divisional rivals in California will further increase these duty days.
Future Gameplay and Additional Tax Considerations
In 2026, the Patriots will face the Los Angeles Chargers while the Seahawks will play against the San Francisco 49ers and the Los Angeles Rams during the regular season. Additional tax implications could arise from preseason games or player movements due to trades and free agency.
Player Tax Projections
Based on player contracts and projected earnings, estimates for tax liabilities on California earnings vary significantly. For instance:
- Drake Maye (Patriots): Estimated tax of approximately $186,000 if victorious.
- Sam Darnold (Seahawks): Estimated tax of around $249,000 with a win.
Maye, under a four-year rookie contract worth $36.6 million, is likely to pay this amount based on a combination of his salary, bonuses, and the winnings from this year’s Super Bowl. Darnold, who signed a $105 million deal with the Seahawks, could owe more due to his higher earnings.
Conclusion
While Super Bowl LX will be remembered for its excitement and the quest for the championship, it also underscores the reality of California’s aggressive taxation on professional athletes. Understanding these implications is crucial for players who may spend only a brief time in the state yet face substantial financial responsibilities.
