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State Taxes Put NFL Salary Cap Under Fresh Scrutiny After Odighizuwa Trade

Seattle’s John Schneider says Washington’s pending 9.9% millionaires tax would weaken the team’s recruiting pitch.

Overview

  • PFT Live reports that league figures are discussing whether the salary cap should account for state-tax differences in players’ take-home pay.
  • One floated idea would grant high-tax teams a cap bump, and applying 13.3% to a $301.2 million 2026 cap would lift it to about $341.2 million for California clubs.
  • Implementation would be complex because players are taxed by game location and some states also tax prorated signing and roster bonuses.
  • Schneider warned that Washington’s 9.9% tax on income above $1 million is expected to be signed and take effect in 2028 with first payments due in 2029, and he says agents have already raised concerns.
  • The NFL has announced no formal policy change, and some owners may resist since a higher cap also raises spending floors.