🏈 The Jock Tax: What Pro Athletes and Coaches Need to Know

When fans talk about professional sports, the conversation usually revolves around performance, contracts, and championships — not state tax codes. But for athletes and coaches who earn income across multiple states, the “jock tax” can be just as important to track as game stats.

Whether you’re signing your first professional contract or managing a multi-year coaching deal, understanding how the jock tax works can save you from unexpected tax bills (and headaches) later.

What Is the Jock Tax?

The “jock tax” isn’t an official IRS term. It’s a nickname for the state income taxes levied on professional athletes (and coaches) who earn income while working temporarily in different states.

Most states with an income tax assert that if you earn income within their borders — even for a short time — you owe state income tax on that portion. For pro athletes, that means every away game, tournament, or appearance in a taxable state could create a filing obligation.

This concept started making headlines in the early 1990s when California taxed Michael Jordan after the Bulls beat the Lakers in the NBA Finals. Illinois — Jordan’s home state — quickly retaliated by taxing visiting players, and soon the “jock tax” spread across the country.

How States Calculate the Jock Tax

Each state has its own method, but most use a “duty days” formula to determine how much income is taxable.

Duty days include any day an athlete or coach performs job duties — games, practices, meetings, media appearances, and travel for team business.

For example:

This can add up quickly when multiple states are involved. Professional athletes often file 10 to 15 state tax returns per year, sometimes more.

Why It Matters for Coaches and Staff, Too

While the “jock tax” name implies it’s only for players, coaches, trainers, and other traveling staff are often subject to the same rules.

If a head coach earns performance bonuses tied to playoff appearances or championships in other states, those earnings may be apportioned and taxed across jurisdictions.

Even endorsement or speaking income — if earned in a specific location — can trigger additional filing requirements.

States With (and Without) the Jock Tax

Not every state taxes athletes the same way.

Here’s a quick look at some key differences:

• California & New York: Aggressive enforcement and high tax rates. They require detailed recordkeeping of duty days.

• Illinois, Pennsylvania, Ohio: Commonly tax visiting athletes, though rates and rules vary by city as well (e.g., Philadelphia’s city wage tax).

• Texas, Florida, Washington, Nevada, Tennessee: No state income tax — a significant advantage for athletes based or competing there.

Teams often base operations in these tax-friendly states for that reason.

Common Pitfalls and Planning Tips

For high-earning professionals, the jock tax can get complicated fast. Here are a few key reminders:

✅ Track your duty days carefully. Keep calendars and travel records showing where you worked each day — this documentation is critical if audited.

✅ Plan for estimated taxes. States expect timely payments, even for partial-year income.

✅ Watch your residency rules. Your home-state tax obligations may still apply to all your income, with credits for taxes paid elsewhere.

✅ Consider your team’s schedule. Signing with a team in a no-tax state can reduce exposure, but multi-state play still triggers reporting.

✅ Work with experienced advisors. Sports-focused tax professionals can help minimize double taxation and identify legitimate deductions.

Beyond the Game: Why It’s About More Than Just Sports

The jock tax highlights a broader trend in tax policy: states competing for high-income earners and enforcing multi-state taxation more aggressively.

For professional athletes and coaches, this means the financial side of sports has become as strategic as the playbook. Managing your tax exposure is part of managing your career.

The Takeaway

If you’re a professional athlete, coach, or part of a traveling team, your “home field” for taxes is bigger than you think. Each city and state you visit may want a piece of your paycheck — and mistakes can be costly.

Careful recordkeeping, proactive planning, and professional guidance can make the difference between a smooth season and a stack of unexpected tax notices.

At Turner Business Solutions, we help athletes, coaches, and sports professionals stay compliant while keeping more of what they earn.

➡️ Contact us today to schedule a consultation or learn how we can help you navigate multi-state and professional income tax rules.

Up Next:👉 Part 2 of our “Taxes in the World of Sports” series: “NIL Income and Taxes — What College Athletes Need to Know.”