What is a jock tax? Report reveals Aaron Rodgers paid $400,000 last year
Aaron Rodgers has made the Big Apple his home after playing 18 seasons with the Packers. The new Jets quarterback got the change of scenery he desired, but likely didn't prefer the change of his income last year.
In 2022, Rodgers paid $400K due to an income tax commonly known to athletes as a 'jock tax'. It is an income tax which several states charge non residents as they earn in their state.
The jock tax impacts those who can generate high incomes like the four-time NFL MVP. It has existed for decades, but came to prominence in 1991 thanks to NBA great Michael Jordan.
This upcoming season could see Aaron Rodgers pay some more when it comes to the jock tax. The Jets star recently bought a $9.5 million-dollar mansion in Montclair, New Jersey, making Rodgers a resident of the state.
The New York Jets will be playing in seven different states in the 2023 season. Three of those states have no state income tax.
The quarterback is fine when they face the Cowboys (Texas), Raiders (Nevada), and Dolphins (Florida), but will pay the tax when the Jets face Russell Wilson and the Broncos (Colorado) and Josh Allen and the Bills (New York).
Aaron Rodgers will be paying 24.44 percent as jock tax in 2023.
Aaron Rodgers' career earnings: How much has the 4x MVP made in his NFL career?
The 39-year-old has made a substantial living as he enters his 19th season in the league. He has netted $305.6 million in career earnings, all from his time with Green Bay. Of that amount, $174.5 million came from signing bonuses, while $72.4 million came in salary.
His career earnings will see a boost as he signed a two-year $75 million restructured contract extension with the Jets last month.
Why did Aaron Rodgers take a $35 million paycut with Jets this year?
According to Rodgers, one reason why he took a huge paycut is that it's not all about money at this point of his career. Per NFL.com, he stated:
"I mean, it was the right thing to do, I felt like. I'm very well paid, so I have no problem with what I'm getting paid. I took contracts years before free agency for a number of times, knowing that I would be at the top of the market probably and then get passed up multiple times. I never hit free agency."
He added that he wants the Jets to have the cap space so the team can compete this season and possibly next year:
"This, to me, is a win-win-win for everybody. Win for me -- I get paid a ton of money. Win for the team -- we get a low cap number and deferred some cash. Win for other guys that we can bring in and sign. I have no complaints. I'm not missing it at all."
Only time will tell if the paycut will pay off for Aaron Rodgers and the Jets as Super Bowl expectations are high for the upcoming season.
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