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NBA Finals 2023: Jimmy Butler Earns More Than Nikola Jokic By Saving On Taxes

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Gia Nguyen
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Gia Nguyen Sports Editor

Gia is a Basketball Insiders contributor based in Canada. She graduated from the University of Windsor with a Bachelor of Science, so she knows the make-up of a winning bet. Gia uses her analytical background to tell stories using the latest data and statistics. Her work has been sourced by Entrepreneur, Inquirer, and more. Gia is also interested in health, wellness, and yoga.

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Updated06 Jun 2023

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NBA Finals 2023: Jimmy Butler Earns More Than Nikola Jokic By Saving On Taxes

Like the rest of American citizens, NBA players are subjected to income taxes every year. However, since the players reside in different states, the individual income tax rate varies from state to state.

While it might seem like a novelty, the difference can add up, especially for players that have signed max contracts.

Jimmy Butler, who plays for the Miami Heat and lives in Florida, is subjected to no state tax. Others, like the Denver Nugget’s Nikola Jokic, aren’t so lucky. Colorado has a state tax of 4.4 percent which means everyone pays the same rate, no matter how much money they make.

Depending on where athletes live, the state tax could affect how much they bring home. In the U.S., the highest state tax is California, where residents pay about 13.3 percent in taxes. Athletes also owe taxes in states when playing on the road. This is called jock tax.

That means NBA superstars like LeBron James and Stephen Curry pay a decent portion of their annual salary in just taxes alone.

Let’s break down how Jimmy Butler actually makes more than Nikola Jokic after taxes.

Jimmy Butler’s Income After Taxes

For the 2023 NBA season, Jimmy Butler’s salary was $45.18 million. While that number doesn’t include any bonuses, such as playoffs incentives, Butler’s total net income for this season is $26 million.

Like everyone else, a large portion of Butler’s salary is given in federal tax which will cost the six-time NBA All-Star about $16.72 million. His agent fee is $1.36 million and he will also have to pay $680K in jock tax and $420K in FICA (Federal Insurance Contributions Act).

However, luckily for Butler, he lives in the state of Florida which poses a zero percent state tax. With no state tax, Butler saves himself nearly $2 million a year by living in Florida.

Nikola Jokic’s Income After Taxes

Despite being paid almost $1 million more than Butler, Jokic actually brings home less after taxes.

Jokic’s annual salary is $46.19 million but due to taxes, his net income is only $24.23 million, which is $1.76 million less than Butler’s.

Like Butler, a huge chunk of Jokic’s salary goes into federal tax, which costs the Nuggets’ star around $17.36 million. The state of Colorado has a 4.4 percent tax rate meaning Jokic must pay $2.06 million in state tax this year. He also owes $1.41 million for agent fees, $1.4 million in jock tax, and $436K in FICA.

Even though Jokic has more than $10 million in salary than Butler, he will earn nearly the same amount over the course of his contract because he lives in Colorado.

Over the course NBA career, players in states like Texas or Florida can help players save millions of dollars in taxes.

The NBA Finals continue on Wednesday night in Miami after the Heat managed to tie the series 1-1. The Nuggets will be on the road with Game 3 tipping off at 8:30 p.m. ET at Kaseya Center.

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