Tax jurisdiction · United States
New Jersey athlete tax: what a pro athlete really pays
New Jersey takes 10.75% of a top-end athlete salary, which is $1,075,000 on a $10M contract. That ranks 19 of 66 jurisdictions we track. Against a no-tax state the same deal is worth $1,075,000 less.
New Jersey tax at each contract size
| Contract | New Jersey tax | Effective rate | Left before federal tax |
|---|---|---|---|
| $1,000,000 | $107,500 | 10.75% | $892,500 |
| $5,000,000 | $537,500 | 10.75% | $4,462,500 |
| $10,000,000 | $1,075,000 | 10.75% | $8,925,000 |
| $25,000,000 | $2,687,500 | 10.75% | $22,312,500 |
These figures are the state bill alone. Federal tax, FICA, agent fees and league deductions all come off the remainder.
Teams in New Jersey
4 teams play in New Jersey:
- New York Giants · NFL
- New York Jets · NFL
- New Jersey Devils · NHL
- New Jersey (NJ) · NCAA
Each team page runs a full contract through the federal brackets, New Jersey's state tax, agent fees and league deductions to give a take-home figure.
How New Jersey compares
| Benchmark | Top rate | On a $10M contract | Difference vs New Jersey |
|---|---|---|---|
| New Jersey | 10.75% | $1,075,000 | — |
| Texas (no income tax) | 0% | $0 | +$1,075,000 |
| California (highest US state) | 13.3% | $1,330,000 | -$255,000 |
Signed from New Jersey's point of view: a positive number is what New Jersey takes that the benchmark does not.
The jock tax in New Jersey
Every state with an income tax taxes visiting athletes on duty days worked inside its borders. New Jersey is no exception. A player who lives elsewhere owes New Jersey only on the share of the season spent here, calculated by counting practice and game days.
The reverse is the bigger number. A New Jersey resident owes New Jersey on the entire salary no matter where the games are played, which is why residency — not team location — drives most of the planning.
Frequently asked
How much state tax does a $10M athlete salary pay in New Jersey?
$1,075,000 at the 10.75% top marginal rate. Our model applies the top rate to the whole salary, which overstates the bill slightly and therefore understates take-home pay.
Do away games change what an athlete owes New Jersey?
If the player is a New Jersey resident, the state taxes the full salary regardless of where games are played. Non-residents owe New Jersey only on duty days worked here, which is the jock tax.