Dak Prescott, the quarterback for the Dallas Cowboys, inked a huge four-year, $240 million contract extension only hours before the 2024 NFL season started. Prescott will become extremely wealthy as a result of the contract, which has made him the highest-paid player in terms of average yearly income. But those millions in compensation also come with millions in taxes.
The Sports Geek (TSG) examined what each NFL player making $1 million a year would take home once the government claimed its part prior to the 2024 season. We can create a ballpark estimate of Prescott’s bank account size based on those estimates.
The media outlet claims that NFL players must pay five taxes:
- Federal Income Tax
- State Income Tax
- Local Municipal Tax
- Federal Insurance Contributions Act (FICA)
- Jock Tax
With an effective federal tax rate of about 32.5% in the US, they take away slightly more than $325,000 for every $1 million earned by a player. For Prescott, that is an even bigger chunk than it would be for any other player.
The quarterback owes over $19.5 million in federal income taxes, which is the same as the entire salary of Baltimore Ravens All-Pro cornerback Marlon Humphrey!
