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.
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