Find out how much a player pays in taxes while playing with the Columbus Blue Jackets
Have you ever wondered how much NHL players pay in taxes?
Well, W. Graeme Roustan of The Hockey News did some digging and found out just how much a player would need to pay per team.
The study was based on a player making $3 million in a season.
The teams paying the highest taxes in the league are four Canadian teams, which shouldn't come as a surprise.
As for the Columbus Blue Jackets, they rank 19th in the NHL for taxes paid by players.
On a $3 million contract, the breakdown looks like this:
Federal Taxes: 36.35%
Social Security Taxes: 1.78%
Total Taxes Paid by U.S. Players: 45.19%
Total Taxes Paid: 45.19%
Total Dollars Paid in Taxes: $1,355,607
Money After Taxes: $1,644,393
This breakdown shows that if a player signs for $3 million per season, they will earn $1,644,393 after taxes are paid.
That means 45.19% of the AAV is taken off the top before the player even sees the money in their bank account.
The $1,644,393 isn't purely disposable income. Players still need to cover costs such as housing, transportation, insurance/health care, training, nutrition, equipment, and agent fees.
Typically, agent fees are 3-5%, which means the player loses an additional $49,000 to $90,000 of the $1.6 million left.
If you factor in other estimated expenses, such as $150,000 to $200,000 for housing, transportation, and other necessities, the total expenses (including agent fees) amount to $200,000 to $300,000.
This reveals that when an NHL player signs a large contract, they can lose up to 53% of their earnings to taxes and necessary expenses, depending on where they play.
What's Next - The Jackets are back home on Thursday to welcome in the Seattle Kraken.
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