There are usually a lot of factors that people consider when they are trying to determine where they are going to live, with their choice of work being a very common one. On the other hand, not everyone typically chooses where he or she is going to work by how many taxes he or she will pay. However, that very factor could play a key role in where NBA star Carmelo Anthony ends up calling his next home.
When you make an average salary, considering your state taxes may not be a huge factor in where you live. However, for professional athletes like Mr. Anthony, the state you choose to call home can play a big role in your bottom line. One of the interesting things about Mr. Anthony’s decision is that he can $33 million more if he resigns with the New York Knicks than he can if signs anywhere else. However all those extra millions are a little deceiving.
That’s because thanks to New York’s super inflated state and city income taxes, Mr. Anthony would be paying as much as 8.82 percent in state taxes plus 3.876 percent more in city taxes. His endorsement earnings would also be subject to the same tax percentage, which means his take home pay wouldn’t be nearly as impressive as it sounds.
The rumors abound as to where Mr. Anthony will sign, but three of the most common destinations are Miami, Houston and Chicago. While Florida and Texas have no state income tax period, Illinois has a flat state tax rate of 5 percent, making any one of these options attractive as far as taxes are concerned.
Time will tell where Mr. Anthony ends up, but if you are in a similar position in your career and need help crunching the numbers, then give GROCO a call at 1-877-CPA-2006. We can help you determine which locations might be the best and which ones not so much. So contact us today.