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Jeremy Lin Expected to Save $1 Million in Taxes in Texas

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New York (July 19, 2012)

By Michael Cohn

New York Knicks hoops star Jeremy Lin will be saving more than $1 million in taxes by moving to Houston, estimates one group.

The Harvard-educated point guard became a major draw for the Knicks early this year, inspiring fans, especially Asian Americans, to cheer him on in a trend dubbed by New York sportswriters as “Linsanity.” But after suffering a knee injury in March, his future with the team became uncertain.

The Houston Rockets offered to sign him to a $25.1 million, three-year deal, which the Knicks declined to match Tuesday.

After signing the contract with the Houston Rockets, Lin will move from one of the highest-taxed states in the country to one of the lowest, noted the advocacy group Americans for Tax Reform, led by Grover Norquist. As a Knick, Lin paid a top state income tax rate of 8.82 percent, with New York City piling on at 3.876 percent. As a Houston Rocket, however, he will have no state or local tax burden.

At an average salary of $8,366,667, Lin will save over $1 million annually in state and local income taxes.

Lin will save a total of over $3.12 million in income taxes over the life of his contract with the Rockets, ATR noted. Factoring in his endorsement earnings, the tax savings will be even higher.

3 Comments

Both previous comments are valid. However, the point is by moving from New York (paricularly New York City) to Texas he will have a significant tax savings.

Posted by: hhoff0440 | July 20, 2012 8:24 AM

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He'll still pay income tax on most away games....up to 50% of his income will be subject to state/local income tax from away game locations! San Antonio, Dallas,Miami, Orlando ...may wind up being favorite away games...

Posted by: aguidr@aol.com | July 20, 2012 8:02 AM

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Are you factoring the deduction for state and local income taxes on Schedule A?

Posted by: Unknown | July 20, 2012 7:45 AM

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