As realtors remind us, it’s all about location, location, location.
The Number One draft pick, Eric Fisher, received a signing bonus of $14,500,000 (rounded) while the Number Two’s bonus was “only” $13,800,000 (again, rounded), a substantial difference of $700,000. But, Luke Joeckel, the #2 pick, will be playing for the Jacksonville Jaguars while the #1 pick will be playing in Missouri for the Kansas City Chiefs.
Missouri state income taxes are even higher than Pennsylvania’s, a hefty 6%. Plus, Kansas City has a local tax of 1%. Florida has no state income tax. Assuming Fisher lives in Kansas City, Missouri, his state and local income taxes on the signing bonus and his first year compensation will total roughly $1,042,000. Joeckel, living in Florida, will pay no state and local income tax.
The net effect is that our #2 pick’s take home pay will be nearly $300,000 higher than the #1. Of course, at these salary levels, a difference of $300,000 may not be noticed after all.
Please contact a member of the Acuity Advisors' Individual Services Team at 717.239.5180 if you have questions or need more information.
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