Do NFL Players Pay Taxes in Every State They Play In?

Professional football players often face a complex tax situation that extends beyond their federal income tax obligations. Many people wonder if these athletes pay taxes in every state where they play a game. Generally, they do, due to specific tax regulations that apply to individuals earning income across different state lines. This adds complexity to their tax planning and compliance.

Understanding the Jock Tax

The term “jock tax” refers to the application of existing state income tax laws to professional athletes who earn income within a state’s borders but are not residents of that state. It is not a distinct or separate tax, but rather the way states collect income tax from non-residents. This taxation applies to income earned during games, practices, and other team activities conducted in states other than their primary residence. States implement this to tax income generated within their jurisdiction, similar to how they tax other non-resident individuals or businesses performing services there. While prominently associated with high-earning sports figures, this concept of taxing non-resident income applies broadly to many traveling professionals who work in multiple states.

Apportioning Income for State Taxes

A player’s income is apportioned to the various states where services are performed, with the most common method being the “duty days” or “games played” approach. Under this method, a player’s total annual income, including salary and bonuses, is divided by the total number of “duty days” in a season. Duty days typically encompass all days a player is required to perform services, such as training camp, practice days, and game days. The resulting per-day income is then multiplied by the number of duty days spent in a particular state. This calculation ensures that only the portion of income directly attributable to activities within that specific state is subject to its income tax.

Navigating Multiple State Filings

Once income has been apportioned to various states, NFL players typically need to file multiple non-resident state income tax returns. These are in addition to their federal tax return and their resident state return. To prevent income from being taxed twice, players generally receive a tax credit on their resident state tax return for taxes paid to other states where they played. Accurate record-keeping of travel and duty days is crucial for correctly preparing these numerous tax filings and claiming appropriate credits.