Thirteen states currently tax professional athletes on wages earned within their borders, regardless of where the athlete lives
A jock tax is a state income tax on money earned by professional athletes playing games in that state. The athlete pays tax on income from that specific game or event, not on their entire salary. If a basketball player from California earns $50,000 per game in New York, New York taxes that $50,000 — but California does not tax it because the work happened elsewhere.
The states with jock taxes are California, Illinois, Indiana, Iowa, Louisiana, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, Ohio, and Pennsylvania. Each state sets its own rate and rules about which sports count and how much income triggers the tax. Some states tax only professional teams; others include college athletes or endorsement income earned during games.
The tax exists because states argue that athletes use state infrastructure — stadiums, roads, police — while earning money there, so they should contribute to that state's revenue. Athletes and teams have challenged the tax in court multiple times, but courts have generally upheld it as legal.
Key Takeaways
- Thirteen states tax professional athlete income earned within their borders, with rates ranging from about 2% to 13.3% depending on the state.
- The tax applies to income from games played in that state only, not to the athlete's total salary or endorsement deals made elsewhere.
- California, New York, Illinois, and Pennsylvania collect the most jock tax revenue because they host major sports franchises and events.
- Athletes who play in multiple states file returns in each state where they earned income above that state's threshold.
How the jock tax works in practice
When a professional athlete plays a game in a jock tax state, that state taxes the income from that single game. The calculation is straightforward: divide the athlete's annual salary by the number of games in the season, then tax that per-game amount at the state's income tax rate.
A player earning $10 million over an 82-game NBA season makes roughly $121,951 per game. If that player's team plays 41 games in New York (home and away combined), New York taxes $121,951 × 41 = roughly $5 million of the player's income. The player's home state may or may not tax the same income, depending on whether that state has a jock tax and whether the player is a resident.
The team or league usually withholds the tax and sends it to the state on the athlete's behalf. The athlete then reports the income on their state tax return. If too much was withheld, they receive a refund; if too little, they owe more when they file.
Which states have the highest jock tax rates
California taxes professional athlete income at 13.3%, the highest rate in the country. New York taxes at 8.82% (state plus local tax in New York City). Illinois taxes at 4.95%. These three states generate the most jock tax revenue because they host major franchises: the Lakers and Dodgers in California, the Yankees and Knicks in New York, and the Bears and Cubs in Illinois.
Pennsylvania taxes at 3.07%, Massachusetts at 5.1%, and New Jersey at 10.75%. The remaining states with jock taxes — Indiana, Iowa, Louisiana, Michigan, Minnesota, Missouri, and Ohio — tax at rates between 2% and 6.5%. A player who plays 41 games in California and 41 in New York pays significantly more in jock taxes than one who plays the same number of games in Indiana and Iowa.
Some states exempt certain types of income. New Jersey, for example, does not tax endorsement deals or appearance fees — only game-day earnings. Other states tax all income earned during the time the athlete is in the state for a game, including practice and promotional events.
States without a jock tax
Thirty-seven states do not have a jock tax. This includes major sports markets like Texas (home of the Cowboys, Mavericks, and Rangers), Florida (Dolphins, Heat, Rays, Lightning), and Nevada (Raiders, Golden Knights). Athletes who live in these states and play games there pay no state income tax on that earnings.
Some athletes strategically choose to live in no-tax states to reduce their overall tax burden. A player who lives in Texas and plays home games there pays no state income tax on that income, even though they pay jock taxes when they play away games in taxing states. This creates an advantage for teams in low-tax states when recruiting free agents.
How athletes file taxes in multiple states
Professional athletes who play in multiple states file what is called a nonresident return in each state where they earned income above that state's threshold. A baseball player might file returns in 15 different states during a single season.
The process is handled largely by the team or league. Most professional sports leagues have payroll departments that calculate how much income was earned in each state, withhold the appropriate tax, and file the returns on the athlete's behalf. The athlete then receives copies of all filings and reports the information on their federal return.
Some athletes hire tax professionals who specialize in jock tax to review the withholding and may support nothing was missed. This is especially important for athletes who play in states with different rules — some states tax endorsement income, others do not; some count practice days, others count only game days.
Why states created the jock tax
The jock tax emerged in the 1990s as states looked for new revenue sources. Illinois was the first state to enact one in 1991, followed by California in 1992. The reasoning was that professional athletes use state resources — stadiums built with public money, police and fire services, roads and utilities — while earning large sums, so they should pay state income tax on that earnings.
States also argued that the tax was fair because it applied equally to all high-income earners who worked in the state, not just athletes. A consultant who flies to a state for a project pays income tax on that project's earnings; an athlete should do the same.
The tax has been challenged in court on the grounds that it violates the Commerce Clause of the U.S. Constitution, which limits states' power to tax interstate commerce. Courts have rejected these challenges, ruling that the tax is applied equally to all residents and nonresidents and is therefore constitutional.
How much revenue states collect from jock taxes
California collects the most jock tax revenue of any state, bringing in tens of millions of dollars annually. New York, Illinois, and Pennsylvania also collect substantial amounts. Smaller states with jock taxes collect less, but the revenue still matters to state budgets.
The exact amounts vary year to year depending on how many games are played, player salaries, and whether major events like playoffs or All-Star games occur in the state. A state that hosts an All-Star Game or playoff series in a given year collects significantly more jock tax revenue that year than in years without those events.
The revenue is typically deposited into the state's general fund and used for education, infrastructure, or other state services. Some states have proposed dedicating jock tax revenue to specific purposes — like funding youth sports programs — but most states treat it as general revenue.
Frequently Asked Questions
Do college athletes have to pay jock tax?
Most states do not tax college athlete income because college athletes are not considered professional athletes. However, a few states — including California — have begun taxing college athletes on endorsement deals and name, image, and likeness (NIL) payments. The rules are still evolving as states clarify what counts as taxable income.
Do athletes pay jock tax on playoff games?
Yes. Playoff games are taxed the same way as regular-season games. If a team plays a playoff series in a jock tax state, the athlete pays tax on income from each game in that series. This can significantly increase an athlete's tax bill in years when their team makes a deep playoff run.
What if an athlete lives in a jock tax state and plays home games there?
They still pay the jock tax on income from home games. Residency does not exempt an athlete from the jock tax. A player who lives in California and plays for the Lakers pays California's jock tax on income from every game, whether at home or away.
Can athletes deduct jock taxes paid to one state from taxes owed to another?
This depends on the states involved and the athlete's residency. Some states offer tax credits for taxes paid to other states, while others do not. An athlete's tax professional reviews the specific rules for each state combination to avoid double taxation.
Do endorsement deals count as jock tax income?
It depends on the state. Some states tax only game-day earnings; others tax all income earned while the athlete is in the state for a game, including endorsement deals signed during that time. A few states tax endorsement income separately from game income. Athletes should check each state's rules before signing deals while traveling for games.