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Reading: Anthony Davis Will Earn Just $24 Million Per Season From His $186 Million Contract Extension: $22.9 Million Federal Tax, $4.1 Million Cali Tax, And More
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Home > NBA News & Analysis > Anthony Davis Will Earn Just $24 Million Per Season From His $186 Million Contract Extension: $22.9 Million Federal Tax, $4.1 Million Cali Tax, And More

Anthony Davis Will Earn Just $24 Million Per Season From His $186 Million Contract Extension: $22.9 Million Federal Tax, $4.1 Million Cali Tax, And More

Anthony Davis will earn only $24 million per year with his three-year $186 million contract extension after taxes and fees.

Aikansh Chaudhary
Aug 7, 2023
3 Min Read
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Credit: Rob Gray-USA TODAY Sports

  • Anthony Davis will earn an average of $62 million per season with the Lakers
  • Davis’ new contract will kick in from the 2025-26 NBA season
  • The Lakers superstar will make just $24 million per season after taxes

Anthony Davis made headlines after signing a three-year $186 million contract extension with the Los Angeles Lakers. Davis’ new contract will kick in from the 2025-26 NBA season.

While on paper, Davis’ contract sounds very lucrative, he won’t be earning anywhere close to $62 million per year after taxes. Andrew Petcash gave a complete breakdown of Davis’ earnings in a recent Twitter post.

“Anthony Davis just signed the NBA’s richest annual extension (3 years $186 million).

 And the taxes will be steep playing in LA: 

$62M: Salary 

$22.9M: Federal Tax 

$6M: NBA Escrow 

$4.1M: Cali Tax 

$1.8M: Agent Fee 

$1.8M: Jock Tax 

$1.4M: FICA/Medicare 

= $24M: Net Income.”

Anthony Davis just signed the NBA's richest annual extension (3 years $186 million).

And the 𝘵𝘢𝘹𝘦𝘴 will be steep playing in LA: 🥴

$62M: Salary
–
$22.9M: Federal Tax
$6M: NBA Escrow
$4.1M: Cali Tax
$1.8M: Agent Fee
$1.8M: Jock Tax
$1.4M: FICA/Medicare
=
$24M: Net Income pic.twitter.com/JhjrGjNWhC

— Andrew Petcash (@AndrewPetcash) August 5, 2023

After all the taxes and fees, the Los Angeles Lakers superstar will make roughly $24 million with his new deal. As for his contract breakdown, Davis is expected to make $57.6 million in 2025-26, $62.2 million in 2026-27, and $66.8 million in 2027-28.

When Davis’ deal expires, he will enter the NBA free agency as a 35-year-old. Of course, there are concerns about Davis’ injuries, but the Lakers did the smart thing by locking in the 30-year-old for the rest of his prime.


Rob Pelinka Opens Up On Anthony Davis’ Three-Year $186 Million Contract Extension

Anthony Davis’ new contract is the richest annual extension in NBA history. Last season, he averaged 25.9 points, 12.5 rebounds, and 2.6 assists over 56 games.

Davis’ numbers have never been an issue, it’s his inability to stay healthy that concerns fans the most. So far in his four-year stint with the Lakers, Davis has featured in 194 games. He has played more than 60 games just once, that too in the 2019-20 NBA season.

Despite knowing that, Lakers general manager Rob Pelinka is happy to finalize the richest annual extension in NBA history with Anthony Davis.

“In our conversations with Anthony, his desire to lead our franchise for the next several years became abundantly clear. It is a proud day for Lakers Nation when we’re able to extend the contract of one of the game’s most dominant two-way players.”

Can Davis manage to stay healthy during his time with the Lakers? That remains one of the biggest concerns for the Purple and Gold heading into the 2023-24 NBA season.

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ByAikansh Chaudhary
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Aikansh Chaudhary is an NBA columnist for Fadeaway World. He is always ready to publish the most interesting news, legendary throwbacks, and the hottest buzz around the NBA. A die-hard Lakers fan, Aikansh will forever uphold LeBron James as the GOAT. In his free time, you can either find him playing basketball or soccer. Expertise: NBA, Trades, ThrowbacksFavorite Team: Los Angeles LakersFeatured On A.M. HoopsPrevious Work: EssentiallySports, Sportskeeda, Lake Show Life, The Sports Rush
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