Seahawks GM warns Washington’s new income tax could hurt recruiting

Washington lawmakers recently passed SB 6346, creating a 9.9 percent tax on income above $1 million. Policy supporters have labeled it a “millionaire’s tax” but critics say it is effectively the state’s first income tax and will be expanded to every Washingtonian. Gov. Bob Ferguson has indicated he intends to sign the bill. If implemented, the tax is expected to take effect in 2028.

For decades, Washington’s lack of a state income tax has been a key selling point for the Seahawks and other professional sports teams competing for top free agents. Schneider says that the advantage may soon disappear.

“There were a bunch of agents texting me the other day like, ‘Hey, can’t use that anymore, buddy,’” Schneider said this week on Seattle Sports 710-AM. “It’s always been a huge attraction, especially competing with the California teams. It’s been a big deal for us. So it’s going to sting from a recruiting standpoint.”

The change comes as the Seahawks sit atop the NFL world after their recent Super Bowl victory, making player recruitment and retention critical for sustaining success. Washington is currently one of eight NFL markets located in states without a personal income tax. That group includes Texas teams such as the Dallas Cowboys and Houston Texans, Florida franchises including the Miami Dolphins, Tampa Bay Buccaneers, and Jacksonville Jaguars, as well as the Las Vegas Raiders in Nevada and the Tennessee Titans. Critics say the new tax could place Seattle at a disadvantage compared to those states, where players can keep more of their earnings. The issue may extend beyond the Seahawks.

Washington’s proposed income tax structure could also function as a form of “jock tax,” allowing the state to tax professional athletes on income earned during games, practices, and other team activities performed in Washington using a “duty-day” allocation formula. That approach is already common in high-tax states like California, where Seahawks quarterback Sam Darnold recently faced a large tax bill after the team’s Super Bowl win in Santa Clara. Under California’s system, athletes must pay state income taxes based on the number of workdays spent in the state.

Business leaders have also raised broader economic concerns. A recent Association of Washington Business survey found 44 percent of employers are considering moving their personal residence out of the state, with taxes cited as the top concern.

The recruiting concern also surfaces as Seattle works to bring back the NBA’s SuperSonics, who left the city in 2008. Internal documents previously obtained show sports executives warning Gov. Ferguson that the state’s tax environment could affect Seattle’s attractiveness for professional sports franchises.

For the Seahawks, the change represents a shift in a recruiting pitch that has worked for decades, and according to Schneider, the league agents have already noticed.