How NHL Players Are Taxed, and Why Florida Beats Toronto on Take-Home Pay

For NHL fans, the focus is often on goals, saves, and playoff glory. But behind the scenes, a less visible game plays out on tax returns, not ice. NHL players, with their multi-million-dollar contracts, endorsements, and cross-border travel, navigate one of the most complex tax mazes in professional sports. And where a player signs can dramatically affect how much of their paycheck they keep.
A common debate arises every offseason: Would you rather play for the Florida Panthers or the Toronto Maple Leafs—if take-home pay is your goal?
The answer, unsurprisingly, tilts toward the Sunshine State. But understanding why requires a deep dive into residency rules, jock taxes, foreign credits, signing bonus planning, and more.
Understanding NHL Taxation: Beyond Salary Figures
NHL players don’t just pay tax where their team is located. Under the “duty days” concept, players owe income tax in every jurisdiction where they earn income, whether through games, practices, or travel. That means:
- A Toronto Maple Leafs player pays Ontario tax on home games but also U.S. state taxes when playing in New York, California, or other U.S. states.
- A Florida Panthers player avoids Florida income tax on home games, but still owes taxes in places like California and Quebec when on the road.
Each player’s total income is allocated across jurisdictions based on the number of duty days in each location, resulting in a complex patchwork of taxation.
Jock Taxes: The Cross-Border Complication
The “jock tax” is a state tax levied on athletes who perform in that region—even for a single game. California is among the most aggressive, with a top rate of 13.3%. And unlike some fans assume, these taxes don’t just apply on game days—they also include travel and practice days.
This means that a Florida-based player visiting California for a road trip can still owe tens of thousands in state taxes, despite living in a no-income-tax state.
Residency: Where You Live (and Prove It) Matters
Residency is key to determining a player’s worldwide tax obligation. Canadian tax residents are taxed on global income. U.S. citizens and residents must file globally but can generally claim foreign tax credits for tax paid to Canada to offset the U.S. tax on this same income.
The tiebreaker provisions in the Canada-U.S. tax treaty help players avoid double taxation; however, navigating the 183-day rule, foreign employer clauses, and residency ties (such as homes, driver’s licenses, and family location) is crucial. A U.S.-born Florida Panther may avoid Canadian taxation entirely and pay a maximum 37% U.S. federal tax rate on their worldwide income, while a Canadian-born Toronto Maple Leaf may be hit with a 53.53% maximum marginal rate in Ontario.
Case Study: $5 Million USD Salary — Florida vs. Toronto
Let’s consider a real-world scenario comparing two players, each offered a $5 million USD annual salary:
Team | Jurisdiction | Approximate Total Tax (USD) |
Panthers | Florida (no state tax) + U.S. federal + road state tax | $1.9 million |
Maple Leafs | Canadian federal + Ontario + U.S. road state tax (creditable) | $2.6 million |
That’s a difference of over $700,000 USD per year—or $3.5 million USD over a five-year contract. And this assumes no additional income from bonuses, endorsements, or playoff winnings.
Why It’s Not Always Simple: Offsetting Factors
- Currency Exchange
Canadian players spend in Canadian dollars but are paid in U.S. dollars. Over the past five hockey seasons, the Canadian dollar has been as strong as US$1:00:C$1.20, and as weak as US$1.00:C1.4603. This underscores the importance of effectively managing foreign currency exposure.
- Signing Bonuses
Under Article XVI(4) of the U.S.-Canada tax treaty, signing bonuses structured correctly can be taxed at a flat 15% in Canada for non-Canadian tax residents, offering significant tax savings versus normal Canadian tax rates. Structuring a $10M signing bonus this way can save over $1.2M in tax versus receiving it as salary.
- Deductibility Differences
Canadian players can deduct little beyond union dues. U.S. players, before the 2017 Tax Cuts and Jobs Act (TCJA), could deduct agent fees and training costs. That’s no longer the case until at least 2026, but it still leaves U.S. players better off in many scenarios due to lower overall taxable income.
Trades, Buyouts, and Roster Risks
Taxes also vary mid-season. If a player is traded from Florida to Toronto in November, they’ll owe proportionate tax to both jurisdictions based on duty days. Similarly, contract buyouts may trigger a lower flat tax (25%) if paid after the player leaves Canadian tax residency, rather than full Canadian marginal tax rates if paid while a resident of Canada.
Roster changes matter, too. Players demoted to an AHL affiliate in a high-tax state suddenly face state income taxes they didn’t expect. As an example, a Florida Panther who is demoted to the AHL affiliate, the Charlotte Checkers, could pay an additional 4.5% North Carolina state tax.
Even a one-way contract doesn’t shield players from tax surprises. A Florida player might earn $775,000 in the NHL but owe significantly more in tax if called up and down throughout the season.
Bonus and Endorsement Income: A Hidden Variable
NHL stars often earn income off the ice. There are generally more endorsement opportunities available to players on Canadian-based teams. However, endorsement income may be taxed at higher rates even if the deal is with a U.S. brand. For example:
- An Ontario resident may pay 53.5% tax on endorsement income.
- A Florida resident might only pay U.S. federal tax (37%), and possibly none at the state level.
As such, enacting effective tax planning in Canada when meaningful off-ice income is being earned is essential for eroding or eliminating the tax burden between the two jurisdictions.
Retirement Planning: NHL Pensions and RCAs
NHL players qualify for pension credits based on games played. A player needs 10 full seasons (800 games) to get the maximum benefit of $280,000/year (2025). State and provincial tax rates affect how much of this is kept in retirement. Normal retirement age is 62 years old.
European and Canadian players employed by Canadian-based clubs may realize significant tax savings through the implementation of Retirement Compensation Arrangements (RCAs), which allow tax-deferred savings at a 50% refundable rate. The savings are less attractive for players with U.S. citizenship who utilize an RCA while employed by Canadian-based teams.
Postseason Tax Impacts
Playoff bonuses are fully taxable and taxed based on where the games are played.
- A Panthers player winning a Stanley Cup on the road in New York owes NY state taxes.
- A Maple Leafs player playing at home in Ontario pays the province’s top marginal rate, even though playoff salaries are not guaranteed.
The further a player advances through the playoffs, the more exposure he will have to various jurisdictions.
Escrow, Flat Caps, and Financial Pressures
NHL players also contribute a portion of their salaries to escrow, meant to balance revenue splits with owners. In high-salary, high-tax jurisdictions like Toronto, the combination of escrow, tax, and cost of living can leave players with less than 40% of their gross pay. Florida, Texas, and Nevada-based teams (with no state income tax) are in a better position to offer competitive net pay.
Final Verdict: Panthers > Maple Leafs (Financially)
So, which team gives players the best net income outcome?
- Florida Panthers: No state income tax, lower federal tax due to U.S. planning opportunities, more tax-effective endorsements, better weather, and residency flexibility.
- Toronto Maple Leafs: High marginal tax rate (up to 53.53%), heavy CRA scrutiny, volatile exchange rates, and tax inefficiencies for U.S. players. Notwithstanding the considerable income tax savings obtainable through the effective use of an RCA.
Key Takeaways for NHL Players and Advisors
- Location matters—not just for lifestyle, but for after-tax earnings.
- Structure matters—bonuses, buyouts, and residency should all be planned.
- Residency planning is critical—cross-border players need ongoing advice.
- Jock taxes and duty days must be monitored—even one road trip can create liabilities.
- Use a professional team—athletes need cross-border tax, legal, and financial planning expertise.
At Cardinal Point Athlete Advisors, we work with NHL players to help them keep more of what they earn—on both sides of the border. Whether you’re facing your first big contract, a trade, or planning for life after hockey, our cross-border specialists can help you make tax-smart decisions that match your career goals. Because it’s not just about what you make, it’s about what you keep.