Historic Knicks vs Spurs NBA Finals Puts the 'Jock Tax' Back in the Spotlight
The so-called 'jock tax' means that the NBA Finals, and other sporting events, are connected to taxes in an interesting way.
The historic 2026 NBA Finals are officially in the books. And New York City is still celebrating after Jalen Brunson and the Eastern Conference champion New York Knicks captured their first NBA title in 53 years, defeating Victor Wembanyama and the San Antonio Spurs.
But while millions tuned in to watch the unforgettable, five-game thriller on the court, many probably aren’t wondering about the underlying tax implications of the series.
The fact is that the NBA Finals and other major sporting events are tied to taxes, largely due to a lucrative income tax imposed by most states and several cities, widely known as the "jock tax."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
And professional athletes aren't the only ones affected by the levy. People who travel to work with sports teams and earn income across different jurisdictions are also required to pay. Here's more of what you need to know.
What is the jock tax?
The jock tax, an income tax levied on athletes and others associated with sports teams earning money outside their home states, has an interesting history.
- Following the NBA Finals in 1991, California assessed state income taxes against the Chicago Bulls (including Michael Jordan), who at that time played the Los Angeles Lakers in the finals.
- What is Michael Jordan's Revenge? Illinois then enacted its law, dubbed "Michael Jordan's Revenge,” to tax players who came to Chicago. Other states followed.
- The concept was that athletes and staff who earn income while visiting a state should be subject to income tax in that state. The jock tax is still a notable source of revenue for states that impose it.
Who pays the jock tax?
To put the financial scale into perspective, consider New York Knicks Jalen Brunson, who reportedly earned a base NBA salary of roughly $34.9 million for the 2025–26 season.
While a significant portion of his income is tied to his home games at Madison Square Garden, his road game earnings are sliced up by federal income tax, local municipal taxes, and various state jock taxes.
While the jock tax can be substantial — for example, a player earning a premier max contract and spending a multi-game road series in a high-tax jurisdiction like California or New York could owe tens of thousands of dollars for just a few days of work — that represents only a portion of total tax liabilities.
The combined effect of federal, state, and local taxes, plus fees and agent commissions, can, in some cases, reduce a top athlete's take-home pay to around 40–50% of gross earnings.
The jock tax itself is just one component of the overall reduction.
And it's important to note that athletes aren't the only ones who pay jock taxes.
- Anyone connected to a professional or semi-professional team who earns money while visiting another state can be subject to the tax.
- For example, that would include trainers, coaches, physicians, etc., associated with teams that travel to multiple states to work at games.
The jock tax can sometimes be hard to determine because base and bonus income can both be subject to the tax. The calculation formula can also vary by sport.
In some cases, the tax calculation typically relies on a "duty days" formula. If an athlete has 200 total duty days (which includes training camps, practices, regular-season games, and postseason travel) and spends 4 days playing a road series in a visiting city, then 2% of their total base salary becomes subject to that jurisdiction's income tax.
But overall, the amount of jock tax paid considers factors like the number of games played in the states or cities involved, the total annual compensation the athlete receives, and the applicable income tax rate from the nonresident state or city.
Note: The idea behind the jock tax doesn’t only apply in sports contexts. Earning income in a state outside of your home state can have tax implications when your job has nothing to do with sports. (The jock tax tends to get attention because of the money involved with multimillion-dollar athletic contracts. Highly paid entertainers and celebrities also deal with hefty income taxes for income earned outside their home states.)
Which states impose the jock tax?
Most states and some U.S. cities have a jock tax. For example, some cities that impose the tax include Kansas City and Detroit.
But some states don’t have a jock tax, including Florida, Nevada, Texas, Washington, and Tennessee. (Those are five of nine states with no personal income tax.)
Are jock taxes legal?
Jock taxes have faced legal challenges over the years.
For example, in Ohio in 2016, the state’s Supreme Court struck down a “games played” formula used to calculate the tax in Cleveland.
In a landmark decision last year, the Supreme Court of Pennsylvania unanimously struck down Pittsburgh's 3% nonresident jock tax. In the case, National Hockey League Players Ass'n v. City of Pittsburgh, the city argued the tax was fair because residents paid an equivalent combination of other local taxes. However, the Court rejected that defense as unconstitutional discrimination against nonresidents.
As a result, in its 2026 operating budget, the City of Pittsburgh reportedly zeroed out projected jock tax revenues, which had previously reportedly brought in over $6 million annually.
However, as of now, the jock tax is in effect in most states. So, athletes and others impacted by the tax should engage in ongoing tax planning with trusted financial and tax professionals.
And, in case you’re wondering, the jock tax isn’t the only tax levied on athlete and team staff income. Federal income taxes and home-state income taxes must be paid as well.
Related
