Fernando Mendoza’s move to Las Vegas is already paying dividends. The Raiders' top pick is set to save millions thanks to a unique Nevada tax advantage.

The quarterback signed a four-year, $57.2 million contract, with a $38.11 million signing bonus, an average annual income of $14.31 million, and the contract is fully guaranteed.

NFL players, with incomes in the millions, fall into the top federal income tax bracket, which is 37% for 2026. Beyond their salaries, players also pay taxes on income from endorsements and sponsorships.

So, when a player earns money in a specific state, that state may tax that income. And Mendoza is free of that because Nevada (Raider HQ) has no state tax. Yet, federal tax (37%) is applied.

States maintain the right to tax income based on days worked within their borders, though rates vary.

For example, a player for the New York Giants, based in New Jersey, can face a combined top tax rate close to 47 percent if we take into account the federal tax rate and the state tax rate. But this isn’t necessarily true since NFL athletes also pay taxes on a per-state basis when playing matches in other states.

California and New York are some of the high-tax states, and if a player is drafted by a team in those states, they might lose more money than in places like Florida, Texas, Nevada, and others that have a “no state income tax” policy.

Also known as the Jock tax, it was imposed on NFL and NBA players much earlier, but it was taken seriously after NBA player Michael Jordan led the Chicago Bulls to victory over the Los Angeles Lakers.

Alongside Mendoza, another top-five NFL Draft pick is set to avoid paying state income tax.

Which Other Players Will Avoid State Income Tax?

There are 9 U.S. states with no state income tax, which include Tennessee, Florida, Texas, Washington, and others. But remember, there is a catch. No-state-tax applies only to their home games.

Wide receiver Carnell Tate was drafted by the Tennessee Titans with the No. 4 overall pick, making him one of the top five NFL Draft selections.

So, just like Mendoza, Carnell Tate, who signed a four-year, $48 million deal, won’t pay state income tax, as he will spend most of his duty days in Tennessee, which is a “no state income tax” state.

Along with Mendoza and Tate, players drafted in “no state income tax” states include fourth-round pick E Trey Moore and second-round LB Jacob Rodriguez, who signed four-year deals with the Miami Dolphins in Florida.

Also included are sixth-round pick WR Josh Cameron, who signed with the Jacksonville Jaguars in Florida, and first-round pick Jadarian Price, who signed with the Seattle Seahawks in Washington.

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Written by

Monika Khatai

Edited by

Rudra Dubey