Perhaps LeBron James listened to his tax adviser, as well as his mom. Because while King James' supporters may praise the two-time basketball MVP for taking less money in pursuit of winning championships, James actually stands to save money by moving to the Sunshine State, thanks to its lack of a personal income tax. Ohio local and state tax is around 7%. Florida tax is 0%.
James looks to make an estimated $17 million next season by signing with the Miami Heat . Factor in endorsement deals with companies including Nike, Sprint and McDonald's totaling approximately $40 million, and James may find himself saving an estimated $25 million in state taxes over the next five years in Miami over Ohio. Compare this with New York, where even if James signed a contract with the Knicks for an additional $1.5 million, as New York offered, he would be required to pay almost $1.7 million in state taxes, all on top of the additional income tax taken out of his endorsements.
Although the extra money alone was certainly not the only reason James is moving on from Cleveland but it was definitely a factor. It is not only consideration for over paid athletes but with many other wealthy Ohio clients of ours as well.
James looks to make an estimated $17 million next season by signing with the Miami Heat . Factor in endorsement deals with companies including Nike, Sprint and McDonald's totaling approximately $40 million, and James may find himself saving an estimated $25 million in state taxes over the next five years in Miami over Ohio. Compare this with New York, where even if James signed a contract with the Knicks for an additional $1.5 million, as New York offered, he would be required to pay almost $1.7 million in state taxes, all on top of the additional income tax taken out of his endorsements.
Although the extra money alone was certainly not the only reason James is moving on from Cleveland but it was definitely a factor. It is not only consideration for over paid athletes but with many other wealthy Ohio clients of ours as well.
