Ask anybody who’s ever moved from Texas to New York: the native revenue tax distinction can take a chunk. On condition that, rumors that James Harden is concerned with shifting from his NBA dwelling on the Houston Rockets to the Brooklyn Nets have some acquainted tax implications for Harden, as sports activities enterprise web site Sportico reviews, and if he decides to make the transfer, he’ll be going through a tax invoice of virtually $14 million.
The Rockets are reportedly prepared to spend an unprecedented amount of cash to maintain Harden on-board, providing $133 million over the three years nonetheless left on his contract, plus a $103 million two-year extension reported by ESPN. Had he not turned it down, that extension would have made Harden the primary participant in NBA historical past to make greater than $50 million for a single season, and he’d be making it for 2 seasons in a row, assured.
Harden will make $133 million over the subsequent three years it doesn’t matter what crew he is enjoying for, but when the Nets cannot or do not match the extension reportedly supplied by Houston, Harden would naturally be agreeing to pay for much less cash. However that is solely one of many monetary downsides that he is perhaps going through because the tax conditions within the respective states could not be extra totally different. Texas is without doubt one of the few states that haven’t any state revenue tax, whereas New York State and New York Metropolis each have their very own tax charges which come to a mixed 12.7 p.c. Assuming he’d be residing someplace in New York Metropolis, his revenue could be topic to these not-insignificant taxes, plus the “jock taxes” that gamers incur after they play out-of-town video games.
All advised, if Harden determined to maneuver to New York Metropolis to play for the Nets, he’d be taking a look at about $13.6 million in additional taxes in comparison with the place he’s now. There are different monetary components to think about as properly, corresponding to New York’s comparatively excessive value of residing in comparison with Texas, however that is not going so as to add as much as as vital a sum given the amount of cash concerned. Harden may additionally make up the distinction with extra endorsement alternatives since New York is the most important media market within the nation and a spot on the Nets’ roster would elevate his profile much more. And naturally, once you’ve earned as a lot cash as Harden has over the course of his extraordinarily profitable profession, you possibly can afford to make selections for causes aside from cash.