Tax jurisdiction · United States
Texas athlete tax: what a pro athlete really pays
Texas levies no income tax on wages. A $10M contract keeps the full $10,000,000 against the state bill — only federal tax, agent fees and the league's own deductions apply. That is $1,330,000 more than the same contract in California.
Texas tax at each contract size
| Contract | Texas tax | Effective rate | Left before federal tax |
|---|---|---|---|
| $1,000,000 | $0 | 0% | $1,000,000 |
| $5,000,000 | $0 | 0% | $5,000,000 |
| $10,000,000 | $0 | 0% | $10,000,000 |
| $25,000,000 | $0 | 0% | $25,000,000 |
Texas has no personal income tax, making it the most common benchmark for what a no-tax market is worth. These figures are the state bill alone. Federal tax, FICA, agent fees and league deductions all come off the remainder.
Teams in Texas
9 teams play in Texas:
- Dallas Mavericks · NBA
- Houston Rockets · NBA
- San Antonio Spurs · NBA
- Dallas Cowboys · NFL
- Houston Texans · NFL
- Houston Astros · MLB
- Texas Rangers · MLB
- Dallas Stars · NHL
- Texas (TX) · NCAA
Each team page runs a full contract through the federal brackets, Texas's state tax, agent fees and league deductions to give a take-home figure.
How Texas compares
| Benchmark | Top rate | On a $10M contract | Difference vs Texas |
|---|---|---|---|
| Texas | 0% | $0 | — |
| California (highest US state) | 13.3% | $1,330,000 | -$1,330,000 |
Signed from Texas's point of view: a positive number is what Texas takes that the benchmark does not.
The jock tax in Texas
Every state with an income tax taxes visiting athletes on duty days worked inside its borders. Texas is no exception — though with no wage tax there is nothing to collect from a visiting player. A player who lives elsewhere owes Texas only on the share of the season spent here, calculated by counting practice and game days.
The reverse is the bigger number. A Texas resident owes Texas 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
Do athletes pay Texas income tax?
Texas levies no personal income tax on wages, so a player based here pays federal tax and any state they also earn in, but nothing to Texas. Jock tax obligations in other states still apply for away games.
How much more does a $10M contract keep in Texas than in California?
About $1,330,000 more. California's top rate is 13.3% against 0% here, and the difference is charged on the full salary.