Nikola Jokic has proved this season that he has become the best player in the NBA. And it is only fitting that he is paid like it. Before the start of this season, he signed a supermax extension with the Denver Nuggets worth $272 million over five years.
That extension kicks in during the 2023-24 season, with Jokic set to earn $46.9 million in the first year of his deal. But as per reports, he will only see just over half the money that has been promised to him.
“Nikola Jokic’s income after taxes:
$46.9M – Salary
$17.36M – Federal Tax
$2.06M – Colorado Tax
$1.41M – Agent Fee
$1.4M – Jock Tax
$436k – FICA
= $24.23M – Net Income.”
Nikola Jokic's income after taxes 🥴
$46.9M: Salary
–
$17.36M: Federal Tax
$2.06M: Colorado Tax
$1.41M: Agent Fee
$1.4M: Jock Tax
$436k: FICA
=
$24.23M: Net Income pic.twitter.com/DqEQfoOZec
— Andrew Petcash (@AndrewPetcash) June 5, 2023
This is a breakdown of the amount that Nikola Jokic will be paying in taxes, it totals up to roughly $22.6 million. That is a huge sum of money to give up in tax, and it goes to show that while the numbers may seem huge on contracts, players are rarely getting all of that to spend.
Nikola Jokic is a two-time MVP and was seriously in the running to win a third consecutive award this season. Joel Embiid eventually claimed the honor, but Jokic has led his team to the NBA Finals, winning the Western Conference Finals MVP along the way. He could very well be Finals MVP and a champion by the end of the series as well. He is completely deserving of his $272 million contract, having averaged 26 points, 12.2 rebounds, and 8.7 assists over the last three seasons.
What Is The Jock Tax That Will Cost Nikola Jokic $1.4 Million?
Federal tax, state tax, and agent tax, all of these are known and expected costs. However, the jock tax is an interesting addition that many people may not know about. The Jock tax came about thanks to a situation that arose when the State of California assessed taxes to Michael Jordan and the Chicago Bulls in 1991 after they beat the Lakers. An explanation of what it is has been provided below (via smartasset).
“When athletes and other individuals connected to a professional or semiprofessional sports team earn income, that income is subject to federal and state income tax. The exception would be if they lived in a state that doesn’t assess income tax, like Florida or Nevada.
“The jock tax requires athletes and other sports professionals to pay income tax in each state where they earn income. Given the nature of travel in sports, that means multiple states may apply jock tax to income earned by the same athlete as they travel around and play games in many different states.”
Nikola Jokic, like any NBA player, is subjected to this tax as he plays in several states throughout the season. This is an interesting wrinkle for him to plan around. But if his vision off the court is anything like his vision on it, Nikola Jokic will find a way to make the most of the wealth he does receive after taxes.
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