Seattle Seahawks general manager John Schneider said he believes Washington state’s new income tax on high earners will eventually have a negative impact on the team’s ability to sign free agents.
Lawmakers this week passed Washington’s first income tax. The so-called “millionaire tax” will impose a 9.9% tax on annual income of more than $1 million beginning in 2028. Gov. Bob Ferguson has already pledged to sign the bill, though it could still be challenged.
The Seahawks have been one of eight NFL teams that play in states with no income tax, along with the Las Vegas Raiders, Houston Texans, Dallas Cowboys, Tennessee Titans, Tampa Bay Buccaneers, Miami Dolphins and Jacksonville Jaguars.
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That has been part of the Seahawks’ pitch to prospective free agent signings.
“There were a bunch of agents texting me the other day like, ‘Hey, can’t use that anymore, buddy,'” Schneider said Thursday on his Seattle Sports 710-AM radio show. “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. I’m sure Mike Reinfeldt and Mickey Loomis and all the cap guys that have been here before, too, are looking at this like, dang.
“It’s going to sting, no question about it.”
NFL agents polled by ESPN had differing opinions on how much the tax will impact the Seahawks.
“It’s going to be a problem and hopefully it doesn’t happen,” one agent responded.
Another agent said he doesn’t think the tax will hurt the Seahawks in free agency, noting that two of their division rivals — the Los Angeles Rams and San Francisco 49ers — still land targeted free agents despite California’s much higher income tax. The agent also cited the New York Jets, New York Giants and Minnesota Vikings as teams that tend to be unaffected in free agency by their states’ income tax.
That agent said states with no income tax or lower rates are a bonus but that it doesn’t tend to be a deciding factor for players, and that the ones in position to command big money in free agency will still opt for the best deals.
Another agent believes the tax will be a factor for free agents but said they still evaluate offers by their total dollar amount relative to peers at their position.
A different agent said there’s “no chance” he’d want to pay nearly 10% in taxes if he were a player in position to sign a lucrative contract, though he noted that this won’t come into play until 2028 and thus it won’t be a factor in the meantime.
