Washington had been one of five “big league” states without a state income tax.
The state of Washington really has never been mentioned as one of those free agent destination places in sports like Florida or Texas because there is no state income tax. But that is going to change in 2028 and those athletes who play for the Seattle Mariners, Seattle Seahawks, Seattle Kraken, Seattle Sounders, Seattle Storm, the state of Washington’s college teams and maybe, just maybe the Seattle SuperSonics if the National Basketball Association decides to add teams in 2028, will have to pay a millionaire’s tax. The new state tax will go into effect in 2028 and it states that anyone making more than one million dollars annually will have to pay 9.9 percent in the state tax. Seattle has never been thought of as a destination or a glamour market but it is going to cost athletes and coaches more money to work in the state and that could cause some problems for local teams when it comes to attracting free agents.
Income tax opponents want the Washington Supreme Court to give them an opportunity to push for a referendum that would give voters a chance to repeal the law in the November general election. Florida, Nevada, Texas and Tennessee have no state income tax. The National Football League’s Seattle Seahawks franchise General Manager John Schnieder is thinking ahead. “It’s going to affect us,” he said. “There were a bunch of agents texting me the other day like, hey, can’t use that anymore, buddy. I think it is for all the pro teams here in town. It’s always been a huge attraction, especially competing with the California teams. It’s been a big deal for us. So, it’s going to sting, from a recruiting standpoint and what that looks like. It’s going to sting, no question about it.” The tax should not impact the NBA’s expansion decision.
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