Report: No State Income Tax Helps Cano Pocket $42 Million
NEW YORK (CBS Seattle) – New Mariners’ infielder Robinson Cano will benefit not just from his new teammates, but also from Washington state’s income tax…or rather lack of one.
The second baseman stands to net $42 million after tax dollars, reports Bloomberg News.
Cano, who currently resides in New Jersey, intends to relocate to Seattle, according to his management agent.
The Mariners’ agreement with Cano is reportedly for $240 million over 10 years.
New York’s best offer was about $175 million over seven years, according to the New York Post.
Had he re-signed with the Yankees, Cano would have been liable for New York state taxes on 45 percent of his income.
But by playing in the American League West, the All-Star will play 70 percent of his games in states without state income taxes.
That includes two teams in Texas, the Rangers and the Houston Astros.
States tax athletes based on days or games played within their borders, an accountant who specializes in sports issues tells Bloomberg.
The Yankees would have had to pay him more than $265 million for Cano to keep the same amount.
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