Jul 23, 2012

Jeremy Lin That I Used To Know: Saving Big in State Taxes

Jeremy Lin took the NBA by storm in 2012, rising from undrafted Harvard grad to one of the most popular New York Knicks players in a decade. Lin led the Knicks to wins in his first six starts, and became the first player in NBA history to score 20 points and record seven assists in each of his first five starts. After a last-second game-winning three pointer against the Toronto Raptors, his rise to stardom was known ubiquitously as "Linsanity."

After signing a three year, $25.1 million contract with the Houston Rockets, Lin moves from one of the highest taxed states in the country to one of the lowest. As a Knick, Lin paid a top state income tax rate of 8.82 percent, with New York City piling on at 3.876 percent. As a Houston Rocket, however, he will have no state or local tax burden.

At an average salary of $8,366,667, Lin will save over $1 million annually in state and local income taxes.

Moral of the story: Get rich and then move to Texas or Florida!!!

States Without a State Income Tax

Alaska New Hampshire Tennessee
Florida South Dakota Washington
Nevada Texas Wyoming

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