SalarySwishSalarySwish
Avatar

Random2152

Just Keep Swimming
Membre depuis
30 juin 2018
Équipe favorite
Maple Leafs de Toronto
Messages dans les forums
9230
Messages par jour
4.3
Forum: NHL Signings12 avr. à 8 h 50
Sujet: Vegas Golden Knights signed Noah Hanifin (8 Years / $7,350,000 AAV)
<div class="quote"><div class="quote_t">Quoting: <b>Random2152</b></div><div>This contract is a pretty good example on how tax advantage is much smaller than most people think given his offer in CGY was for 7.5. Like yeah it totally exists but it isnt really anything to get antsy about and claim it to be a massive factor. 0.15M is roughly the gap.

Anyway, this contract seems in line with my expectations so I think it's fine. NH is a low end 1st pair D and he's being paid as such</div></div>

<div class="quote"><div class="quote_t">Quoting: <b>doogiski</b></div><div>This doesn't make sense. The tax advantage is substantial and much more than $150k.

The difference for Hanifin each year making $7.35M in Vegas vs. Calgary is $640k take home:

Vegas (taxed at 38.9% from https://www.talent.com/tax-calculator?salary=7350000&amp;from=year&amp;region=Nevada): $7.35M -&gt; $4.49M take home
Calgary (taxed at 47.6% from https://ca.talent.com/tax-calculator?salary=7350000&amp;from=year&amp;region=Alberta): $7.35M -&gt; $3.85M take home

If Hanafin stays all 8 years in Vegas, the total take home difference between signing in Vegas vs. Calgary is $5.12M. This would mean Hanafin would have to play over 9 years in Calgary to take home the same earnings as he does in 8 years in Vegas.</div></div>

That's not how it works though. Salary is taxed where earned (so road games are taxed differently than home games) and signing bonuses are taxed based on residency (hence Auston Matthews pays Arizona taxes on most of his earnings). There are multiple loopholes, tax shelters, etc that players can take advantage of depending on circumstances.

Ergo, the real tax difference between Alberta and Nevada isn't going to be that big.