Interesting article. For years the Seahawks had a recruiting edge because Washington had no state income tax, something the Rams and 49ers couldn’t offer in California. Now Washington’s new tax on high earners could chip away at that advantage. The fact that GM John Schneider is already talking about it publicly says a lot.
New Washington ‘Millionaire Tax’ Could Hurt Seahawks Recruiting
- Thread starter Pedro Ram
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I doubt it. We've never had problems attracting FAs. It's not like they're choosing Texas and Florida teams over the Rams.
Off the top of my head, I can't think of any recent free agent choosing Washington/Seattle over L.A. So, not sure what they've done with this supposed "edge".
If the GM wants to make pre-emptive excuses for anticipated failing in off-season signings, good for him. Ultimately, drilling down, it sounds kind of sad - Schneider can't sell players on having better weather than LA, or lifestyle or opportunities so, in desperation, he had to sell them on taxes? Sad.
View: https://www.youtube.com/watch?v=wgXmerYZA44
It probably has a bit. SoCal has lifestyle draws and other income opportunities. We're a well-run team, great culture and a consistent winner. Players can't dictate who drafts them so the real question comes up when we are trying to hold onto our free agents or attract outside ones. The draws overcome most bottom line money objections, but not all.
It's probably the lunch pail guys who move from a rookie contract around $1m per year to a deal making $3-6mil per year. Those guys usually have one shot to some make some real money. I remember reading that Greg Gaines saved a half million a year signing with a team in a zero income tax state.
I'd say that Schneider's blowin' smoke up everyone's a$$es.
A quick search produced this:
For an annual salary over $2 million in California, the top marginal state income tax rate is 13.3% on taxable income over $1,485,907 for 2025-2026. Additionally, high earners are subject to a 1% mental health services act surcharge on net income over $1 million, effectively increasing the top rate for many, with some total tax burdens reaching over 14%
A quick search produced this:
For an annual salary over $2 million in California, the top marginal state income tax rate is 13.3% on taxable income over $1,485,907 for 2025-2026. Additionally, high earners are subject to a 1% mental health services act surcharge on net income over $1 million, effectively increasing the top rate for many, with some total tax burdens reaching over 14%
I don’t know the specifics, but having just moved from Florida to Minnesota, a state without a state income tax to one with a state income tax, i was reminded of my CA days.
State income tax from 2025 is a deductible expense on one’s FEDERAL income taxes in 2026. This was our second year filing up here and we got all of our state income taxes from last year deducted on our federal return this year. Made it a really nice return.
Plus, athletes now pay based on where the games are played (Thanks to New York State…), so the break only comes for home games if the state doesn’t have a state income tax. Still a sizable chunk on big contracts for sure.
I don’t know about deductible limits and how they’d affect high income earners, but I do know that they’re getting a pretty big chunk of those state income taxes back or at least deducting them against next year’s federal income taxes.
TL;dr It’s not as bad as it seems and athletes aren’t saving nearly as much as the simple math suggests between playing in FL, TX or AZ as opposed to NY, CA or MA or now WA…