Recently-crowned NFL MVP Cam Newton of the Carolina Panthers is taking on Peyton Manning and the Denver Broncos in Super Bowl 50 tonight at 6:30 PM.
However, since the game is being played at Levi’s Stadium in Santa Clara, CA, it’s going to cost Newton a small fortune, thanks to California’s jock tax.
According to Forbes:
“Remember when Peyton Manning paid New Jersey nearly $47,000 in taxes two years ago on his Super Bowl earnings of $46,000? Manning has nothing on the state taxes facing Carolina Panthers quarterback Cam Newton for Super Bowl 50 in Santa Clara, Calif. Newton is looking at a tax bill more than twice as much, which will swallow up his entire Super Bowl paycheck, win or lose, thanks to California’s tops-in-the-nation tax rate of 13.3%.
Win on Sunday, and Newton will pay California a total of $159,560 in taxes in 2016. Lose, and he will pay $159,200, based on an income reduction of $51,000.
The result: Newton will pay California 99.6% of his Super Bowl earnings if the Panthers win. Losing means his effective tax rate will be a whopping 198.8%. Oh yeah, he will also pay the IRS 40.5% on his earnings.”