California’s “Jock” Tax Explained

Better listen up Cam. California, like many other states, taxes a percentage of professional athletes’ income from “duty days” in the state. Duty days are days services are performed under contract during the pre-season, regular-season and post-season. Each state will get a pro-rata share of the professional athlete’s annual income allocated by duty days performed in the state divided by total duty days multiplied by annual compensation. Super Bowl L will be played in California where the top tax bracket is 13.3%.

Example: If Cam Newtown, the QB of the Carolina Panther’s, earns $13-million in 2015-2016 seasons and he has 200 total duty days, 10 of which are duty days in California, then he will have $650,000 of California taxable income.

If you have any tax questions please call Mr. Smart Tax, Inc. today! 949-877-3143 or toll-free 1-800-425-0570 or email us at Contact@MrSmartTax.com