Even though Bryce Young was taken first and CJ Stroud went second.
Young went to the Carolina Panthers, located in Charlotte. NC has a flat state income tax of 4.75% for 2023, decreasing slightly over the next five years to 3.99% for 2027. Stroud was drafted by Houston, which has no state income tax (although the property tax will kick his butt if he buys a house). The difference in pay between #1 and #2 picks is less than 4.75%.
Charlotte is near the South Carolina line and it’s possible that Young could live in SC. But from a tax standpoint, he shouldn’t. The SC tax rate is 6.5%.
Arkansas’ top rate (not flat) is 4.7%, by the way, so you’re paying basically the same thing I’m paying in NC for now.
Aloha Jeff,
Outstanding points. On a relatively smaller scale for millionaires but larger for us, how about sales tax? I think NWA is approximately 10%. Don’t know about Texas or Carolinas.
Hawaii sales tax is about 4.75%. Property tax is real cheap but they get you with a high income tax.
UA…Campus of Champions
Texas sales tax is 6.25%; including local taxes, the average statewide is 7.94%. NC has 4.75% state tax and 2.25% mandatory county tax. SC is 6% state, maximum local tax of 3%; the average statewide is 7.68%
According to salestaxhandbook.com, the combined sales tax rate in Washington County is 10.75%. Benton County is 9.75%.
Math isn’t quite that simple. Pro athletes are taxed in the state where they earn the income, not necessarily where the team or they reside. Stroud would pay tax to North Carolina if the Texans were to play the Panthers there. Alternatively, Young wouldn’t pay Carolina any tax on the amount earned if the Panthers played at the Texans.
I can’t even imagine trying to file a tax return by yourself as a pro athlete. Pretty sure this is the same for an entertainer playing shows in various states.
You’re straining for a distinction that doesn’t matter. We don’t have dates but we have opponents and sites for the 2023 schedule. The Panthers play at Atlanta, New Orleans, Tampa, Miami, Chicago, Detroit, Jacksonville, Seattle and Tennessee. As it happens, five of their road games are in no-income-tax states, and they only have eight home games. But Young will still be paying NC tax on 8/17 of his salary, and all of his signing bonus – which is a huge chunk of his $41 million over the next four years.
Guess where the Texans have a road game? Charlotte. Stroud will get to pay that 4.75% on that game. They only have one road game in a no-tax state (Jacksonville). But the other states can’t touch his signing bonus, or his nine home games in 2023.
BTW, I’ve been there paying taxes in multiple states. In 2020 I was sent to Illinois, Indiana and Kentucky as a contractor. Had to file in all those states.
What do they do tax-wise for the games played in London and Germany? No idea.
I didn’t say it wouldn’t be less. I simply stated that the math wouldn’t be as simple as your example of the 4.75% difference in state income tax rates being less than the difference in pay between the two.
Don’t know what their salaries are, nor their bonuses. Just know that the tax man always ends up with more than what they should.
Ha! Actually not the same Ryan Ritchie, though we’ve been tied together in numerous mixups throughout the years. Same dorm at UA, same company for a short while, and even at the same weddings. And we’ve actually never met in person.
I do like me some Rock City Outfitters apparel, however. He includes a handwritten note with each order that says “Thanks Ryan Ritchie. From, the other Ryan Ritchie.”