What Is the Jock Tax — And Who Actually Pays It?

When you see headlines about professional athletes signing multi-million-dollar contracts, it’s easy to assume they’re taking home the full amount. In reality, athletes often lose a significant portion of their earnings to a complex mix of taxes — such as the “jock tax.” 

What Is the Jock Tax?:  

The jock tax is a state income tax imposed on athletes and others who earn money while working in states where they don’t live. 

In short, if a professional athlete travels to another state to play — and earns income from that game — that state can tax a portion of those earnings. While this tax is most commonly associated with athletes, it doesn’t just apply to players. Coaches, trainers, team physicians, and even support staff traveling with the team can also be subject to it. 

The Bigger Picture:  

Between federal, state, and local taxes, plus agent commissions and fees, top athletes often take home just 40–50% of their total earnings.  

And while the jock tax itself is only one piece of that puzzle, it represents a unique — and sometimes surprising — way states claim a share of professional sports income.  

So the next time you see a headline about a massive sports contract, remember: that paycheck gets sliced by a complex web of tax laws before it ever hits the player’s account. 

Joachim & Co. Insight:  

For athletes and professionals working across state lines, strategic tax planning is key. Knowing how much to withhold — and which states have reciprocity agreements — can make a big difference at tax time.  If you or your clients earn income across multiple states, our team can help you: 

-Identify multi-state tax obligations 

-Track duty days and income sources accurately 

-Minimize double taxation with proper filing strategies