Washington's Coming 'Millionaires' Tax' Would Cost Smith-Njigba $12M On New Deal
OutKick • • sports
Key Points:
- Seattle Seahawks receiver Jaxon Smith-Njigba signed a $168.6 million extension, making him the NFL's highest-paid wide receiver on paper, surpassing Cincinnati Bengals' Ja'Marr Chase's $161 million deal.
- After accounting for state income taxes, Chase is expected to take home approximately $156.54 million, slightly more than Smith-Njigba's estimated $156.30 million, despite Smith-Njigba's larger contract.
- The difference arises because Chase plays in Ohio, a red state with low state income tax rates (dropping to 2.75% in 2025), while Smith-Njigba plays in Washington, a blue state with no current income tax but set to impose a 9.9% "millionaires' tax" starting in 2028.
- Washington's new state income tax law, supported by Democrats and potentially taking effect in 2028, will significantly impact Seahawks players' take-home pay, complicating the team's salary management and recruitment strategies.
- The Seahawks' general manager expressed concern that the new tax will reduce the team's competitive advantage previously gained from Washington's lack of state income tax, especially compared to California teams with higher taxes.
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