Michael Jordan's NBA Title Sparked State Tax Crackdown on Remote Workers

The 1991 championship game between the Bulls and Lakers set a precedent that now affects millions of remote workers.

Published on Mar. 5, 2026

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When Michael Jordan and the Chicago Bulls defeated the Los Angeles Lakers in the 1991 NBA Finals, it set off a chain reaction that would have a major impact on remote workers across the United States. California decided to start taxing Jordan's income earned while playing in the state, establishing a precedent known as the 'Jock Tax.' This led other states to follow suit, creating a complex web of state income tax obligations for anyone earning money while working remotely in a state where they don't live.

Why it matters

The 'Jock Tax' law that emerged from the 1991 NBA Finals has become a major issue for the millions of Americans now working remotely, as their income can be subject to taxes in multiple states depending on where they are physically located while working. This creates administrative headaches and potential tax liabilities that both employees and employers need to be aware of.

The details

After the Bulls defeated the Lakers in the 1991 NBA Finals, California decided to tax the income Michael Jordan earned while playing games in the state. This set a precedent that led other states to pass similar 'Jock Tax' laws, allowing them to tax the income of athletes, coaches, and other professionals who earn money while physically present in their state, even if they don't live there. This principle has now been expanded to apply to remote workers, so that your tax obligations follow your physical location, not your home address or where your employer is based.

  • In 1991, the Chicago Bulls defeated the Los Angeles Lakers in the NBA Finals.
  • After the 1991 series, California began taxing the income of NBA players who competed in the state, known as the 'Jock Tax'.
  • Illinois responded by passing a law to tax visiting athletes from states that taxed Illinois players, dubbed 'Michael Jordan's Revenge'.
  • Other states followed suit, establishing the legal foundation that now governs how income is taxed across state lines for remote workers.

The players

Michael Jordan

A legendary NBA player who led the Chicago Bulls to victory over the Los Angeles Lakers in the 1991 NBA Finals, sparking the 'Jock Tax' laws that now impact remote workers.

California

The state that first began taxing the income of NBA players who competed within its borders after the 1991 Finals, establishing the 'Jock Tax' precedent.

Illinois

The state that passed a law to tax visiting athletes from states that taxed Illinois players, in response to California's 'Jock Tax' policy.

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What they’re saying

“Oh! A spectacular move by Michael Jordan!”

— Marv Albert, Sportscaster (Broadcast)

What’s next

State tax authorities continue to closely monitor remote work arrangements, and may pursue corporate tax nexus claims against companies that have employees working across state lines.

The takeaway

The 'Jock Tax' law that emerged from the 1991 NBA Finals has become a major headache for remote workers, who now need to be aware of their tax obligations in any state where they physically perform work, not just their home state. Employers also need to closely track their distributed workforce to avoid potential corporate tax liabilities.