{"id":35503,"date":"2026-06-08T11:06:38","date_gmt":"2026-06-08T15:06:38","guid":{"rendered":"https:\/\/poole.ncsu.edu\/thought-leadership\/?p=35503"},"modified":"2026-06-10T11:06:53","modified_gmt":"2026-06-10T15:06:53","slug":"more-play-lower-state-taxes-the-jock-tax-math-behind-the-carolina-hurricanes-stanley-cup-run","status":"publish","type":"post","link":"https:\/\/poole.ncsu.edu\/thought-leadership\/article\/more-play-lower-state-taxes-the-jock-tax-math-behind-the-carolina-hurricanes-stanley-cup-run\/","title":{"rendered":"More Play, Lower State Taxes: The Jock Tax Math Behind the Carolina Hurricanes\u2019 Stanley Cup Run"},"content":{"rendered":"\n\n\n\t<div class=\"wp-block-ncst-summary\">\n\t\t<p class=\"eyebrow\">At a Glance<\/p>\n    \n\n<ul class=\"wp-block-list\">\n<li>Professional athletes pay income taxes in every state where they play. This is a concept known as the jock tax.<\/li>\n\n\n\n<li>The calculation is complicated: income is allocated across dozens of states using a formula based on working days.<\/li>\n\n\n\n<li>The Hurricanes\u2019 home market rate is low (3.99% in 2026), and the Stanley Cup Final is split between North Carolina and Nevada, a state that does not levy a tax on income. This creates a tax-efficient postseason route that increases duty days in low-income tax rate states, lowering season-long state income taxes even on games previously played.<\/li>\n\n\n\n<li>The nuances matter. Swap playing a team based in Nevada for a team based in California and the whole story flips with season-long state income taxes <em>increasing<\/em>.<\/li>\n<\/ul>\n\n\t<\/div>\n\n\n\n\n<p class=\"wp-block-paragraph\">Sebastian Aho is the Carolina Hurricanes\u2019 alternate captain and <a href=\"https:\/\/www.spotrac.com\/nhl\/player\/_\/id\/19956\/sebastian-aho\">highest-paid player with an annual compensation of $12 million<\/a>. When he takes the ice in the Stanley Cup Final, he is competing for a championship. He is also, without trying, lowering his income taxes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That sounds strange. Most people assume more games mean more income means more taxes. In fact, Aho will earn approximately <a href=\"https:\/\/thehockeywriters.com\/nhl-player-playoff-compensation\/\">$164,000 to $242,000 (average player payout if they lose vs. win the Stanley Cup)<\/a> for his time playing in the playoffs, and his taxes will increase due to these additional earnings. However, the taxes owed on his $12 million salary in 2025-26 go up or down based on how many and where playoff games are located. Thanks to a tax mechanism most fans have never heard of, the Hurricanes\u2019 deep playoff run has slightly reduced his state tax bill compared to a scenario where the team went home in April. The Stanley Cup Final in North Carolina (a 3.99% state income tax rate) and Nevada (0% state income tax rate) is a big part of the reason why.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Athletes Actually Get Taxed<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">All professional athletes in the U.S. are subject to taxes at the federal rates, which progressively range from 10% at low income levels to a top marginal tax rate of 37% at high income levels. Beyond the federal rates, athletes must pay income tax in the state where they live and where they work.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While determining federal taxable income is relatively straightforward, allocating taxable income across states can be complex. The mechanism used is based on duty days \u2014 an aggregation of game days, practice days, travel days, team meetings and media obligations spent in that state. The athletes then multiply each state\u2019s percentage by the state\u2019s income tax rate and their compensation to determine the income taxes owed for each state. For Aho, his taxes are anchored by North Carolina\u2019s flat 3.99% rate, but road games in California (13.30%), New York (10.90%), and New Jersey (10.75%) push it higher.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Carolina\u2019s Tax Geography Is Already Favorable<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Before getting to the playoffs, it helps to understand why North Carolina is already a tax-efficient market for players.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">North Carolina\u2019s flat 3.99% rate (previously 4.25% in 2025) is among the most competitive in the league. Compare that to the New York Rangers, New Jersey Devils, and Los Angeles Kings, whose players face top marginal tax rates of 10.90%, 10.75% and 13.30%, respectively.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Hurricanes\u2019 regular-season road schedule reinforces the advantage. The Hurricanes play games in several states with no income tax at all: Nevada, Texas, Tennessee, Florida, and Washington, meaning income allocated to those games and corresponding duty days is not subject to taxation. The high tax rates Hurricanes will face in some road games is somewhat contained, with only three games in California, three in New York, and two in Washington, D.C. Put differently, taxation at these high levels due to games in these jurisdictions will account for a very small portion in the jock tax formula.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Playing More Games, Paying Less: the Playoff Effect<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Any player can reasonably calculate their jock taxes owed as soon as the schedule is released. However, one key twist is the playoffs. When additional games get added to the schedule, the jock tax formula changes, thus altering the state income taxes owed, even for games previously played. This nuance can increase or decrease U.S. state income tax liability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For the Hurricanes and Aho, the state income tax liability will increase due to more games being played in the U.S. As the Hurricanes advanced through the playoffs, they added duty days to the pool. More U.S. games mean more total compensation gets allocated to U.S. jurisdictions (relative to Canada). That sounds like a tax increase, and in one sense it is. Every additional game played within the U.S. shifts a small amount of taxable income away from Canada and into the U.S., increasing U.S. income tax liability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, it could also lower the state income tax liability. With additional playoff games in the low-income tax rate jurisdiction of North Carolina (as well as now playing games in the 0% income tax rate jurisdiction of Nevada), the jock tax will update to tax more of the players\u2019 income at a lower level. This update will include games previously played during the regular season, and it will lead to lower tax rates on U.S.-sourced income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The net result: the Nevada zero-rate games slightly outweigh the effect of pulling more income into the U.S. pool. The math is straightforward: without the Finals, Aho\u2019s season runs 224 total duty days, a blended state rate of 4.580%, and a combined state tax bill of $492,490.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, add in the potential of seven games (four in North Carolina, three in Nevada) with an estimated two duty days in each jurisdiction per game, and the blended state rate falls to 4.445% with a combined state tax bill of $480,882. The difference yields an income tax benefit of $11,608 on Aho\u2019s games already played simply because more games were added to the schedule.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Those numbers are modest precisely because both competing jurisdictions are low-rate. North Carolina at 3.99% and Nevada at 0% do not leave much room for differences in income tax liabilities. But the direction is clear: as teams play more games in low- or no-income tax rate states, players pay less in taxes on their regular season income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What if the Finals Were in California Instead?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Eleven thousand dollars does not sound like much until you run the same series with a different opponent. Replace the Las Vegas Golden Knights with the Los Angeles Kings. Everything else stays the same: same schedule, same salary, same three road games. The only thing that changes is the road venue state income tax rate: Nevada at 0% becomes California at 13.30%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The blended rate climbs from 4.445% to 4.780%. State taxes rise from $480,882 to $517,155. That is $36,273 more out of Aho\u2019s pocket for playing the exact same number of games, just in a different state.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Put another way, the difference between facing Vegas and facing Los Angeles in the Stanley Cup Final is worth $36,273 to Aho in after-tax income. He does not play a single extra game. He does not earn a single extra dollar. The only variable is which state the road games are played in. Thus, more games are not inherently better or worse for a player\u2019s tax bill. It depends entirely on where those games are played.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The way this duty day formula can work against an athlete was on full display this year in February. As reported in <a href=\"https:\/\/www.forbes.com\/sites\/nathangoldman\/2026\/02\/10\/sam-darnold-won-the-super-bowl---but-lost-money-due-to-the-jock-tax\/\">Forbes<\/a>, Sam Darnold won Super Bowl LX at Levi\u2019s Stadium in Santa Clara and left California with a tax bill larger than his $178,000 winner\u2019s check. Eight incremental duty days in California exposed roughly $1.5 million of his $33.5 million salary to the state\u2019s 13.30% rate, producing an estimated $197,771 tax obligation. He won the championship. He lost money playing in it. Same formula, opposite outcome. Where the games are played is everything.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What This Means Beyond the Ice<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The jock tax has implications that extend well past any individual player\u2019s return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For teams, the home market rate functions as a hidden component of total compensation. A dollar offered by North Carolina is worth more after taxes than a dollar offered by a team in New York or California, all else equal. While not as low as the Florida or Texas-based franchises, North Carolina\u2019s 3.99% flat rate puts the Hurricanes in a competitive tier when it comes to taxes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For visiting players, every game at Lenovo Center creates a North Carolina nonresident tax filing obligation. As the Hurricanes host more high-profile playoff games, the state captures a share of income earned by some very highly paid athletes in professional sports. It is a small but real revenue stream that grows with the team\u2019s postseason success.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And for Aho, there is also a Stanley Cup winner\u2019s share, <a href=\"https:\/\/thehockeywriters.com\/nhl-player-playoff-compensation\/\">estimated to be around $242,000<\/a>, if the Hurricanes come out with the trophy. This bonus would be added to Aho\u2019s total income, and state income taxes would be collected on it using the duty day formula.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The duty day formula does not care about trophies. But during this year\u2019s Stanley Cup Playoffs, it is working in the Canes&#8217; favor for their players to pay less in income taxes.<\/p>\n\n\n<div class=\"wp-block-ncst-featured-people\">\n      <p class=\"eyebrow-label\">featured experts<\/p>\n    <div class=\"featured-people__container\">\n    \n<div class=\"wp-block-ncst-featured-person\">\n    <figure class=\"headshot-container\">\n      <img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" \n        src=\"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-content\/uploads\/sites\/423\/2024\/10\/Carly-Burd-500x500-1.jpg\" \n        alt=\"Carly Burd headshot\" \n        class=\"headshot wp-image-32742\"\n        style=\"object-position:50% 50%\"\n srcset=\"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-content\/uploads\/sites\/423\/2024\/10\/Carly-Burd-500x500-1.jpg 500w, https:\/\/poole.ncsu.edu\/thought-leadership\/wp-content\/uploads\/sites\/423\/2024\/10\/Carly-Burd-500x500-1-300x300.jpg 300w, https:\/\/poole.ncsu.edu\/thought-leadership\/wp-content\/uploads\/sites\/423\/2024\/10\/Carly-Burd-500x500-1-150x150.jpg 150w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/>\n    <\/figure>\n    <div class=\"person-container\">\n      <h3 class=\"name\">Carly Burd<\/h3>\n              <p class=\"title\"><em>An assistant professor of accounting, <a href=\"https:\/\/poole.ncsu.edu\/people\/carly-burd\/\">Carly Burd<\/a> studies corporate taxation and trade policy, capital markets and the role of tariffs in business decisions.<\/em><\/p>\n            \n\n\n    <\/div>\n  <\/div>\n\n\n<div class=\"wp-block-ncst-featured-person\">\n    <figure class=\"headshot-container\">\n      <img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" \n        src=\"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-content\/uploads\/sites\/423\/2022\/06\/Goldman-Nathan-12455-2019.jpg\" \n        alt=\"Nathan Goldman smiling, wearing a blue suit jacket with a red tie\" \n        class=\"headshot wp-image-17845\"\n        style=\"object-position:50% 50%\"\n srcset=\"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-content\/uploads\/sites\/423\/2022\/06\/Goldman-Nathan-12455-2019.jpg 500w, https:\/\/poole.ncsu.edu\/thought-leadership\/wp-content\/uploads\/sites\/423\/2022\/06\/Goldman-Nathan-12455-2019-300x300.jpg 300w, https:\/\/poole.ncsu.edu\/thought-leadership\/wp-content\/uploads\/sites\/423\/2022\/06\/Goldman-Nathan-12455-2019-150x150.jpg 150w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/>\n    <\/figure>\n    <div class=\"person-container\">\n      <h3 class=\"name\">Nathan Goldman<\/h3>\n              <p class=\"title\"><a href=\"https:\/\/poole.ncsu.edu\/people\/nathan-goldman-2\/\"><em>Nathan Goldman<\/em><\/a><em>\u00a0is the Dean\u2019s Professor of Accounting and a University Faculty Scholar. His teaching and research focus on corporate taxation.<\/em><\/p>\n            \n\n\n    <\/div>\n  <\/div>\n\n\n  <\/div>\n<\/div>","protected":false,"raw":"<!-- wp:ncst\/dynamic-header {\"block\":\"ncst\/default-post-header\",\"isSummaryActive\":true} -->\n<!-- wp:ncst\/default-post-header {\"caption\":\"Action on the ice during Game 2 of the 2026 Stanley Cup Final between the Carolina Hurricanes and Vegas Golden Knights at Lenovo Center on Thursday, June 4. (Photo by Josh Lavallee\/Carolina Hurricanes)\",\"displayCategoryID\":638,\"subtitle\":\"Poole College experts Carly Burd and Nathan Goldman examine a little-known income tax rule that shows why the location of playoff games can matter just as much as the number played.\"} \/-->\n\n<!-- wp:ncst\/summary -->\n<!-- wp:list -->\n<ul class=\"wp-block-list\"><!-- wp:list-item -->\n<li>Professional athletes pay income taxes in every state where they play. This is a concept known as the jock tax.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The calculation is complicated: income is allocated across dozens of states using a formula based on working days.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The Hurricanes\u2019 home market rate is low (3.99% in 2026), and the Stanley Cup Final is split between North Carolina and Nevada, a state that does not levy a tax on income. This creates a tax-efficient postseason route that increases duty days in low-income tax rate states, lowering season-long state income taxes even on games previously played.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The nuances matter. Swap playing a team based in Nevada for a team based in California and the whole story flips with season-long state income taxes <em>increasing<\/em>.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n<!-- \/wp:ncst\/summary -->\n<!-- \/wp:ncst\/dynamic-header -->\n\n<!-- wp:paragraph -->\n<p>Sebastian Aho is the Carolina Hurricanes\u2019 alternate captain and <a href=\"https:\/\/www.spotrac.com\/nhl\/player\/_\/id\/19956\/sebastian-aho\">highest-paid player with an annual compensation of $12 million<\/a>. When he takes the ice in the Stanley Cup Final, he is competing for a championship. He is also, without trying, lowering his income taxes.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>That sounds strange. Most people assume more games mean more income means more taxes. In fact, Aho will earn approximately <a href=\"https:\/\/thehockeywriters.com\/nhl-player-playoff-compensation\/\">$164,000 to $242,000 (average player payout if they lose vs. win the Stanley Cup)<\/a> for his time playing in the playoffs, and his taxes will increase due to these additional earnings. However, the taxes owed on his $12 million salary in 2025-26 go up or down based on how many and where playoff games are located. Thanks to a tax mechanism most fans have never heard of, the Hurricanes\u2019 deep playoff run has slightly reduced his state tax bill compared to a scenario where the team went home in April. The Stanley Cup Final in North Carolina (a 3.99% state income tax rate) and Nevada (0% state income tax rate) is a big part of the reason why.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"levelOptions\":[2,3,4,5,6]} -->\n<h2>How Athletes Actually Get Taxed<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>All professional athletes in the U.S. are subject to taxes at the federal rates, which progressively range from 10% at low income levels to a top marginal tax rate of 37% at high income levels. Beyond the federal rates, athletes must pay income tax in the state where they live and where they work.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>While determining federal taxable income is relatively straightforward, allocating taxable income across states can be complex. The mechanism used is based on duty days \u2014 an aggregation of game days, practice days, travel days, team meetings and media obligations spent in that state. The athletes then multiply each state\u2019s percentage by the state\u2019s income tax rate and their compensation to determine the income taxes owed for each state. For Aho, his taxes are anchored by North Carolina\u2019s flat 3.99% rate, but road games in California (13.30%), New York (10.90%), and New Jersey (10.75%) push it higher.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"levelOptions\":[2,3,4,5,6]} -->\n<h2>Carolina\u2019s Tax Geography Is Already Favorable<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Before getting to the playoffs, it helps to understand why North Carolina is already a tax-efficient market for players.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>North Carolina\u2019s flat 3.99% rate (previously 4.25% in 2025) is among the most competitive in the league. Compare that to the New York Rangers, New Jersey Devils, and Los Angeles Kings, whose players face top marginal tax rates of 10.90%, 10.75% and 13.30%, respectively.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The Hurricanes\u2019 regular-season road schedule reinforces the advantage. The Hurricanes play games in several states with no income tax at all: Nevada, Texas, Tennessee, Florida, and Washington, meaning income allocated to those games and corresponding duty days is not subject to taxation. The high tax rates Hurricanes will face in some road games is somewhat contained, with only three games in California, three in New York, and two in Washington, D.C. Put differently, taxation at these high levels due to games in these jurisdictions will account for a very small portion in the jock tax formula.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"levelOptions\":[2,3,4,5,6]} -->\n<h2>Playing More Games, Paying Less: the Playoff Effect<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Any player can reasonably calculate their jock taxes owed as soon as the schedule is released. However, one key twist is the playoffs. When additional games get added to the schedule, the jock tax formula changes, thus altering the state income taxes owed, even for games previously played. This nuance can increase or decrease U.S. state income tax liability.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For the Hurricanes and Aho, the state income tax liability will increase due to more games being played in the U.S. As the Hurricanes advanced through the playoffs, they added duty days to the pool. More U.S. games mean more total compensation gets allocated to U.S. jurisdictions (relative to Canada). That sounds like a tax increase, and in one sense it is. Every additional game played within the U.S. shifts a small amount of taxable income away from Canada and into the U.S., increasing U.S. income tax liability.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, it could also lower the state income tax liability. With additional playoff games in the low-income tax rate jurisdiction of North Carolina (as well as now playing games in the 0% income tax rate jurisdiction of Nevada), the jock tax will update to tax more of the players\u2019 income at a lower level. This update will include games previously played during the regular season, and it will lead to lower tax rates on U.S.-sourced income.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The net result: the Nevada zero-rate games slightly outweigh the effect of pulling more income into the U.S. pool. The math is straightforward: without the Finals, Aho\u2019s season runs 224 total duty days, a blended state rate of 4.580%, and a combined state tax bill of $492,490.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Now, add in the potential of seven games (four in North Carolina, three in Nevada) with an estimated two duty days in each jurisdiction per game, and the blended state rate falls to 4.445% with a combined state tax bill of $480,882. The difference yields an income tax benefit of $11,608 on Aho\u2019s games already played simply because more games were added to the schedule.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Those numbers are modest precisely because both competing jurisdictions are low-rate. North Carolina at 3.99% and Nevada at 0% do not leave much room for differences in income tax liabilities. But the direction is clear: as teams play more games in low- or no-income tax rate states, players pay less in taxes on their regular season income.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"levelOptions\":[2,3,4,5,6]} -->\n<h2>What if the Finals Were in California Instead?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Eleven thousand dollars does not sound like much until you run the same series with a different opponent. Replace the Las Vegas Golden Knights with the Los Angeles Kings. Everything else stays the same: same schedule, same salary, same three road games. The only thing that changes is the road venue state income tax rate: Nevada at 0% becomes California at 13.30%.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The blended rate climbs from 4.445% to 4.780%. State taxes rise from $480,882 to $517,155. That is $36,273 more out of Aho\u2019s pocket for playing the exact same number of games, just in a different state.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Put another way, the difference between facing Vegas and facing Los Angeles in the Stanley Cup Final is worth $36,273 to Aho in after-tax income. He does not play a single extra game. He does not earn a single extra dollar. The only variable is which state the road games are played in. Thus, more games are not inherently better or worse for a player\u2019s tax bill. It depends entirely on where those games are played.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The way this duty day formula can work against an athlete was on full display this year in February. As reported in <a href=\"https:\/\/www.forbes.com\/sites\/nathangoldman\/2026\/02\/10\/sam-darnold-won-the-super-bowl---but-lost-money-due-to-the-jock-tax\/\">Forbes<\/a>, Sam Darnold won Super Bowl LX at Levi\u2019s Stadium in Santa Clara and left California with a tax bill larger than his $178,000 winner\u2019s check. Eight incremental duty days in California exposed roughly $1.5 million of his $33.5 million salary to the state\u2019s 13.30% rate, producing an estimated $197,771 tax obligation. He won the championship. He lost money playing in it. Same formula, opposite outcome. Where the games are played is everything.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"levelOptions\":[2,3,4,5,6]} -->\n<h2><strong>What This Means Beyond the Ice<\/strong><\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The jock tax has implications that extend well past any individual player\u2019s return.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For teams, the home market rate functions as a hidden component of total compensation. A dollar offered by North Carolina is worth more after taxes than a dollar offered by a team in New York or California, all else equal. While not as low as the Florida or Texas-based franchises, North Carolina\u2019s 3.99% flat rate puts the Hurricanes in a competitive tier when it comes to taxes.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For visiting players, every game at Lenovo Center creates a North Carolina nonresident tax filing obligation. As the Hurricanes host more high-profile playoff games, the state captures a share of income earned by some very highly paid athletes in professional sports. It is a small but real revenue stream that grows with the team\u2019s postseason success.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>And for Aho, there is also a Stanley Cup winner\u2019s share, <a href=\"https:\/\/thehockeywriters.com\/nhl-player-playoff-compensation\/\">estimated to be around $242,000<\/a>, if the Hurricanes come out with the trophy. This bonus would be added to Aho\u2019s total income, and state income taxes would be collected on it using the duty day formula.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The duty day formula does not care about trophies. But during this year\u2019s Stanley Cup Playoffs, it is working in the Canes' favor for their players to pay less in income taxes.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:ncst\/featured-people {\"label\":\"featured experts\"} -->\n<!-- wp:ncst\/featured-person {\"name\":\"Carly Burd\",\"title\":\"\\u003cem\\u003eAn assistant professor of accounting, \\u003ca href=\\u0022https:\/\/poole.ncsu.edu\/people\/carly-burd\/\\u0022\\u003eCarly Burd\\u003c\/a\\u003e studies corporate taxation and trade policy, capital markets and the role of tariffs in business decisions.\\u003c\/em\\u003e\",\"headshot\":{\"id\":32742,\"url\":\"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-content\/uploads\/sites\/423\/2024\/10\/Carly-Burd-500x500-1.jpg\",\"alt\":\"Carly Burd headshot\"}} -->\n<!-- wp:ncst\/bold-link {\"placeholder\":\"Enter optional link\"} \/-->\n<!-- \/wp:ncst\/featured-person -->\n\n<!-- wp:ncst\/featured-person {\"name\":\"Nathan Goldman\",\"title\":\"\\u003ca href=\\u0022https:\/\/poole.ncsu.edu\/people\/nathan-goldman-2\/\\u0022\\u003e\\u003cem\\u003eNathan Goldman\\u003c\/em\\u003e\\u003c\/a\\u003e\\u003cem\\u003e\u00a0is the Dean\u2019s Professor of Accounting and a University Faculty Scholar. His teaching and research focus on corporate taxation.\\u003c\/em\\u003e\",\"headshot\":{\"id\":17845,\"url\":\"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-content\/uploads\/sites\/423\/2022\/06\/Goldman-Nathan-12455-2019.jpg\",\"alt\":\"Nathan Goldman smiling, wearing a blue suit jacket with a red tie\"}} -->\n<!-- wp:ncst\/bold-link {\"placeholder\":\"Enter optional link\"} \/-->\n<!-- \/wp:ncst\/featured-person -->\n<!-- \/wp:ncst\/featured-people -->"},"excerpt":{"rendered":"<p>Poole College experts Carly Burd and Nathan Goldman examine a little-known income tax rule that shows why the location of playoff games can matter just as much as the number played.<\/p>\n","protected":false},"author":11164,"featured_media":35516,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"source":"","ncst_custom_author":"Carly Burd and Nathan Goldman","ncst_show_custom_author":true,"ncst_dynamicHeaderBlockName":"","ncst_dynamicHeaderData":"{\"caption\":\"Action on the ice during Game 2 of the 2026 Stanley Cup Final between the Carolina Hurricanes and Vegas Golden Knights at Lenovo Center on Thursday, June 4. (Photo by Josh Lavallee\/Carolina Hurricanes)\",\"displayCategoryID\":638,\"showAuthor\":true,\"showDate\":true,\"showFeaturedVideo\":false,\"subtitle\":\"Poole College experts Carly Burd and Nathan Goldman examine a little-known income tax rule that shows why the location of playoff games can matter just as much as the number played.\"}","ncst_content_audit_freq":"","ncst_content_audit_date":"","ncst_content_audit_display":false,"ncst_backToTopFlag":"","footnotes":""},"categories":[638,162,77],"tags":[553,540,720,714,385],"_ncst_magazine_issue":[],"series":[],"class_list":["post-35503","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","category-issues-and-insights","category-newswire","tag-carly-burd","tag-nathan-goldman","tag-net-gains","tag-professional-sports","tag-taxes"],"displayCategory":{"term_id":638,"name":"Accounting","slug":"accounting","term_group":0,"term_taxonomy_id":638,"taxonomy":"category","description":"","parent":0,"count":81,"filter":"raw"},"acf":{"ncst_posts_meta_modified_date":null},"_links":{"self":[{"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/posts\/35503","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/users\/11164"}],"replies":[{"embeddable":true,"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/comments?post=35503"}],"version-history":[{"count":10,"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/posts\/35503\/revisions"}],"predecessor-version":[{"id":35526,"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/posts\/35503\/revisions\/35526"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/media\/35516"}],"wp:attachment":[{"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/media?parent=35503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/categories?post=35503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/tags?post=35503"},{"taxonomy":"_ncst_magazine_issue","embeddable":true,"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/_ncst_magazine_issue?post=35503"},{"taxonomy":"series","embeddable":true,"href":"https:\/\/poole.ncsu.edu\/thought-leadership\/wp-json\/wp\/v2\/series?post=35503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}