Washington is one of the few states without a state income tax, which has been a big selling point for its NFL teams. However, that might change soon. A new “millionaire tax” of 9.9% is making its way through the legislature, and Governor Bob Ferguson plans to sign it. If it does pass, it will take effect in 2028.
This change could impact how the Seattle Seahawks attract new players. General Manager John Schneider shared on Seattle Sports 710-AM that agents have already started expressing concerns. He pointed out that being tax-free has given Washington an edge, especially when competing with teams in California, which has a hefty 13.3% income tax for high earners.
Currently, other NFL states without a state income tax include Nevada, Texas, Tennessee, and Florida. But it’s not just about tax benefits—team performance is also crucial. For instance, while the Seahawks have reached three Super Bowls since 2014, the other tax-free teams like the Jaguars and Dolphins have not had the same level of success in recent years.
With the potential millionaire tax looming, star players may reconsider signing with Washington teams, especially if they have offers from more successful franchises with no income tax advantages. Experts like sports economist Andy Schwartz suggest that team performance often outweighs tax benefits. A player may choose a winning team over a tax-free state if the chances of success seem higher.
As the NFL landscape evolves, fans and teams alike are watching closely. Changes like the millionaire tax could reshape recruitment strategies for NFL teams in Washington, making it a pivotal issue for the future of local sports.
For more on economic impacts, check out this report from the Tax Foundation.
