If Joe Flacco does in fact live in New Jersey, his tax burden is actually 0.39 percent higher than originally estimated. The new tax rate is 52.37 percent. Meaning the Ravens star quarterback's tax liability is roughly $10.53 million.
Special thanks to Darren Rovell and ESPN for assisting ATR in this matter.
Americans for Tax Reform say Brees will earn more than Flacco in avg annual $ because of Maryland taxes. Problem? QB lives in NJ.
— darren rovell (@darrenrovell) March 7, 2013
@darrenrovell I'm the author of the Flacco piece.You strengthen my case because NJ's income tax rate is 8.97%. 0.39% higher than original
— Matt Blumenfeld (@MattLBlumenfeld) March 7, 2013
@mattlblumenfeld the premise is flawed to start. Flacco isn’t earning his average annual value. He’s making $1M next year in salary.
— darren rovell (@darrenrovell) March 7, 2013
@mattlblumenfeld but then he gets that credited against his home state.
— darren rovell (@darrenrovell) March 7, 2013
@darrenrovell Flacco will pay state income tax rate for each state he plays an away game on the estimated $1.2 million he earns per game.
— Matt Blumenfeld (@MattLBlumenfeld) March 7, 2013
@mattlblumenfeld and Flacco is only making $58K every week.
— darren rovell (@darrenrovell) March 7, 2013
@darrenrovell you have to take into account his signing bonus as well. It is taxed as part of the full contract and yearly pay
— Matt Blumenfeld (@MattLBlumenfeld) March 7, 2013
@mattlblumenfeld very well aware. Best guy on this is @sportstaxman. Recommend talking to him.
— darren rovell (@darrenrovell) March 7, 2013
@darrenrovell @sportstaxman isn't it true that NJ top marginal income tax rate is higher than MD? Flacco would actually pay more in taxes
— Matt Blumenfeld (@MattLBlumenfeld) March 7, 2013
.@mattlblumenfeld @darrenrovell it is important to know where Flacco is a resident of. Also need to read contract on signing bonus language
— Robert Raiola, CPA (@SportsTaxMan) March 7, 2013