Pro Athletes Flock to States with No Income Tax

Huge contracts are worth even more in tax-free states like Florida and Texas.

Feb. 10, 2026 at 2:15am

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Professional athletes are increasingly choosing to play in states without income taxes, such as Florida, Texas, and Tennessee, in order to maximize the value of their lucrative contracts. This trend has been highlighted by high-profile player moves, like Mikko Rantanen signing an $96 million extension with the Dallas Stars after being traded from Colorado and Grant Williams leaving the Boston Celtics for the Dallas Mavericks.

Why it matters

The lack of a state income tax can make a significant difference in the take-home pay for professional athletes with multi-million dollar contracts. This creates an incentive for players to sign with teams in tax-friendly states, potentially impacting roster decisions and player movement across the major sports leagues.

The details

Professional athletes can save millions of dollars over the course of their careers by playing in states without an income tax. For example, Mikko Rantanen turned down similar offers from his previous teams in Colorado and North Carolina to sign an $96 million extension with the Dallas Stars, where he will keep an extra $4 million due to Texas' lack of a state income tax. NBA player Grant Williams also cited the tax savings as a key factor in his decision to leave the Boston Celtics for the Dallas Mavericks, noting that his $54 million contract in Texas was effectively worth $58 million in tax-heavy Massachusetts.

  • In January 2025, Mikko Rantanen was traded from the Colorado Avalanche to the (North) Carolina Hurricanes.
  • Three months later, in April 2025, Rantanen was traded again to the Dallas Stars, where he signed an 8-year, $96 million extension.
  • In 2023, NBA player Grant Williams left the Boston Celtics and signed a $54 million contract with the Dallas Mavericks.

The players

Mikko Rantanen

A professional hockey player who spent the first 10 years of his NHL career with the Colorado Avalanche before being traded to the (North) Carolina Hurricanes and then the Dallas Stars, where he signed a lucrative contract extension.

Grant Williams

An NBA player who left the Boston Celtics in 2023 to sign a $54 million contract with the Dallas Mavericks, citing the tax savings as a key factor in his decision.

Tyreek Hill

An NFL player who chose to sign with the Miami Dolphins in free agency over the New York Jets, saying "Those state taxes, man" were a major consideration.

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What they’re saying

“In Boston, it's really like $48 million with the millionaire's tax, so $54 million in Dallas is really like $58 million in Boston.”

— Grant Williams

“Those state taxes, man.”

— Tyreek Hill

What’s next

Several states, including Mississippi, Kentucky, and Missouri, are working to reduce or eliminate income taxes in an effort to attract more professional sports teams and players.

The takeaway

The lack of a state income tax has become a significant factor for professional athletes when choosing where to sign contracts, creating an incentive for them to play in tax-friendly states like Florida, Texas, and Tennessee. This trend is likely to continue as more states look to eliminate or lower their income taxes in order to compete for top sports talent.