So what percentage of Kobe's 135 mil will get taxed?

[Buckeye-NBAFan]

He'd actually have around 90 million after taxes and paying his agent. It's not 50% tax rate.

The highest Federal income tax rate will revert to 39.6% in 2010. Right now, California's state income tax is 9.3% (although they have a massive deficit, state and Federal tax rates could increase over the life of the contract). Plus there is a 1% surcharge in California for income over $1M.

Agent fees are negligible. Maybe 1%? I don't his agent gets much for max contract. The agent of a max contract player makes his money from getting a cut of endorsement deals.

But yes, the tax rate is effectively 50% for him (neglecting sales tax and other taxes).

[Puertorique]

Because of his income he's taxed a bit more. Different tax bracket. I say he stays with about $70 mill.

Also the thing about athletes paying taxes to states they play in is true also. Ask A-Rod who had to pay the State of Minnesotta $335,000 in 2000 for the games he played in the state. I don't think every state has this law but I know at least a few do. It's whats called a Jock Tax.

Just did a quick look up on this. The 1991 Chicago Bulls are the earliest case of being "jock taxed" during the Finals when they played against the Lakers. After returning to Chicago the Bulls received a tax Bill from the state of CA for the 3 games they played in the finals.

After further looking into it as of 2007 20 states have the jock tax law.

[Gutter92]

doozyj, do you feel bad for viciously attacking me ?

[aboveAverage]

He'll have enough to get by

[doozyj]

doozyj, do you feel bad for viciously attacking me ?

LOL Vicisously attacking you!?? LOL. Dude this is just a little internet forum. If you think my replies on a basketball forum are vicous I think you have bigger problems.

[doozyj]

stalker status right there.

Um No and Fail. His house came up in the conversation, you can find info by using a search engine called Google. Try Google sometime, you can Google Google if you need help.

[Gutter92]

doozyj, do you feel bad for viciously attacking me ?

LOL Vicisously attacking you!?? LOL. Dude this is just a little internet forum. If you think my replies on a basketball forum is vicous I think you have bigger problems.

its sarcasm...damn I should use green font

[Excellence]

Every single person has to pay tax to every state he works in - on the portion of income earned in that state - except for states that don't have taxes. However you will be able to claim tax credits on your "home" tax return for taxes paid to any state that is not your "home" state. On your federal return and home state return (the correct term is the resident return), you will have to report your worldwide income and pay tax on it.

[doozyj]

doozyj, do you feel bad for viciously attacking me ?

LOL Vicisously attacking you!?? LOL. Dude this is just a little internet forum. If you think my replies on a basketball forum is vicous I think you have bigger problems.

its sarcasm...damn I should use green font

And so should I. LOL

[Straightwitdaroc]

Every single person has to pay tax to every state he works in - on the portion of income earned in that state - except for states that don't have taxes. However you will be able to claim tax credits on your "home" tax return for taxes paid to any state that is not your "home" state. On your federal return and home state return (the correct term is the resident return), you will have to report your worldwide income and pay tax on it.

Exactly.

Kobe's take home pay after taxes including federal and state will be about

$63.5 MM

[mcleex]

Gimme 1% of that 135 mill and I'm happy

[mobiuseinz]

reading some of these responses makes it clear why the economy is in the toilet.

[Visirale]

This is why Florida teams have an edge in contract negotiations. No state income tax = more money of your salary for you.

[MartyConlonJr]

After the 35% federal tax + 11% state tax, + management fees he'd probably be able to keep 45% it

Management fees aren't 20%. LOL.

35 + 11 + 20 + 45 = 100. LOL

[DEEP3CL]

Now tell me you're kidding. OMFG. Dude you realize a salary is Federal. You pay state taxes where you reside and states taxes aren't 50% ever ever ever ever.

Thanks doozyj for informing the uninformed. In Cali we're taxed 9.25% for every dollar earned.

[mnWI]

Agent fees are somewhere around 4-4.5%. And the average state tax rate just from the states hosting NBA teams is about 5.6%.

[Patterns]

Kobe runs and supports several non-profits so he gets a lot of tax cuts.

[doozyj]

After the 35% federal tax + 11% state tax, + management fees he'd probably be able to keep 45% it

Management fees aren't 20%. LOL.

35 + 11 + 20 + 45 = 100. LOL

LOL. I got owned on my math there.

Anyhow Kobe pays zilch in taxes he is a member of the Bilderberg Group.

[east/beastD-12]

WHO GIVES A ++++ !!!!!!!!!!!!!!!!!!!!

[Excellence]

Kobe runs and supports several non-profits so he gets a lot of tax cuts.

You have to shell out cash in order to get those tax cuts, so...