Learning about how salaries of NHL players are calculated

NHL is the richest hockey tournament in the world. In 2016, the tournament earned $ 3.7 billion, the fifth highest tournament in the world. Because of NHL’s big profits, no hockey tournament can match the North American league in terms of contracts.

For example, according to unofficial data, the biggest salary in KHL is for Metallurgical striker Sergei Mozyakin. He received $ 3,218,235 a year before taxes. In NHL, players with such a salary are not even in the top 100 average annual income. For comparison, Connor McDavid, the highest paid NHL hockey player, received $ 12.5 million before taxes.

The income tax of NHL players

NHL hockey players with the same salary can actually get different amounts after paying income tax. In the United States and Canada, taxes vary by state and province.

The largest income tax among cities represented in NHL in Montreal is 58.75%. Canada accounts for 33% of the federal budget. Quebec Province, where Montreal is located, accounts for 25.75% of the regional budget. For comparison, in Toronto, hockey players pay less (46.6%) due to lower taxes in Ontario (13.6%), in which the city is based.

In the United States, regardless of state, each hockey player brings the state 39.6% of the revenue. But in the United States, as in Canada, there is an extra charge for the state budget. The highest taxes in Los Angeles, San Jose and Anaheim (California) are 13.3%.

In total, hockey players  provide the state with 52.9% of the salary. The four states of the United States – Florida, Nevada, Texas and Tennessee – have no additional income taxes. These states play Tampa, Florida, Vegas, Dallas and Columbia. The players of these teams pay the lowest tax among NHL hockey players – 39.6%.

The difference in tax rates affects the ranks of NHL hockey players who are paid the highest. For example, the average annual salary of goalkeeper Montreal Carey Price is 10.5 million USD. Florida goalkeeper Sergei Bobrovsky officially received less than – 10 million dollars.

However, the real wage of Russians after taxes is much higher – 6,040,000 compared to 4,321,250. This difference arises because Price plays in Montreal, which has the highest tax rate in NHL (58.75%) and Bobrovsky in Florida in which the smallest tax (39.6%).