As wetour the NCAA to look at the large role state income taxes could now play in the NCAA recruiting process, we stop today in the Midwest. First the Big Ten and later today the Big 12.
If this is your first time stopping by, here are some other articles to get you caught up to speed in the series on the impact state income taxes could have on NCAA recruiting.
Although the Big Ten may benefit from little variation among teams within their conference, they will face stiff competition from teams outside their conference – only teams in the Big East or PAC-12 will average higher state income taxes than the Big Ten.
The biggest contributor to the Big Ten high average tax rates results from the high taxes of both Minnesota and Iowa – home to the Big Ten’s Gophers and Hawkeyes. Minnesota Gophers’ football players will bear the 9th highest tax rate among NCAA football programs while their basketball players will owe the 12th most of any basketball program.
This article only discusses state income taxes. College athletes would also be subject to federal and local income taxes. Provisions in the federal tax code allow for the deduction of state and local income taxes for certain income thresholds. Given this potential deduction on federal taxes, the variance in total income taxes owed may not be as drastic between conferences and schools. However, for simplicity sake - this article solely focuses on state income taxes.
Estimated football and basketball salaries provided by CNBC's Mark Koba (@MarkKobaCNBC).
- Estimated football salary: $178,000
- Estimated basketball salary: $375,000