Joe Flacco Not Highest Paid Player In NFL Thanks To MD State Taxes
Although on paper Joe Flacco may be the highest payed QB in the NFL, when you crutch the numbers and take an in-depth look at Joe Cool’s wallet, he’s actually second among the list of quarterbacks cashing in.
According to a report put out by the Americans for Tax Reform, Flacco makes $470,000 less than Drew Brees, who has a five-year $100 million deal.
Flacco’s new six-year $120.6 million contract could be considered fool’s gold. When you’re inking a new, big time contract location plays a significant amount on what your actual take home pay reflects.
Flacco’s marginal tax rate will be 51.98%. His figure doesn’t include the “jock tax” that requires athletes to pay income tax for each road game or any property taxes he’d pay to Maryland. Therefore in reality, Flacco will have to fork over an estimated $1.72 million to Maryland.
A player who makes the kind of income Flacco is bringing in has to pay $8.72 million in federal taxes. That’s a given, but where the cookie starts to crumble allies with the state and county burden. If you are lucky enough to play in Texas or Florida you don’t have to worry about this, since certain states don’t have state taxes.
Drew Brees doesn’t play in a tax free state. However, the rate in Louisiana is 49.4%, according to ATR.
After applying the 49.4% tax rate to his 5-year $100 million contract, which pays out roughly $20 million per year, Brees becomes the highest paid QB by $470,000.
I’m certain Flacco will survive after handing over $1.72 million to Maryland, but did ATR have to take away his title as the highest paid QB. Nobody wants to let Flacco gloat at the top. Nice guys finish last, so second best with the Super Bowl ring isn’t too shabby either. In the words of Ricky Rubio, change your face and be happy Joe.