The Tax Advantage Of Playing In The NFL’s AFC South Division

HOUSTON, TX – NOVEMBER 26: Trevor Lawrence #16 of the Jacksonville Jaguars celebrates after scoring a touchdown against the Houston Texans during the first half at NRG Stadium on November 26, 2023 in Houston, Texas. (Photo by Cooper Neill/Getty Images)

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The 2025 NFL season is upon us with the Buffalo Bills and and Baltimore Ravens as the odds on favorite to win the Super Bowl in February. One team that is less expect to compete for the title is the Miami Dolphins. Pro Bowl wide receiver Tyreek Hill made headlines in 2022 when he signed with the Dolphins over the New York Jets. This football decision made headlines, in part, because a unique factor influenced his decision: taxes. According to The New York Post, Hill stated, “Just those state taxes man. I had to make a grown-up decision.” Despite the tax advantage of playing for the Miami Dolphins in the state of Florida, which does not levy a state-level income tax, Hill missed out on a potentially bigger tax advantage by playing in the AFC South. This article examines how the location of an NFL team affects state tax liability, the tax benefits of playing in the AFC South, and how the Jacksonville Jaguars are the most tax-advantaged NFL team.

The NFL Schedule And State Income Taxes

The NFL operates on a formulaic schedule that makes it easy to determine players’ tax liabilities. In particular, every team plays 8.5 home games per year (eight games one year, nine games the next). In addition, every team has three opponents within their division that they play away from home every single season, according to the NFL. This schedule formula enables players to predict their tax liability for 11.5 games per season. The remaining 6.5 game locations vary each year based on a formula that factors in a variety of determinants.

All athletes participating in games in the U.S. will be subject to federal income taxes, which impose a 37% tax rate on income exceeding $626,350 ($751,600 if married filing jointly). Regarding state taxes, athletes must pay the jock tax, which taxes athletes based on where the games are played, according to H&R Block. This notion means that a player whose home games are in the state of Florida will pay no state income tax on the proportion of their salary assigned to those games, and the player will pay state income taxes on the proportion of their salary assigned to games outside of Florida.

For an athlete like Hill, who plays 8.5 games in Florida but also one game a year in New Jersey (NY Jets), New York (Buffalo Bills), and Massachusetts (New England Patriots), he will, in fact, owe no income taxes for at least an average of 8.5 games. Still, he will pay 9%, 10.9%, and 9%, respectively. These other games mean that Hill’s average state income tax rate across these 10.5 games is not 0%, but rather Hill will pay an average state income tax rate of 2.67% on the games that can be predicted based on the NFL’s formula.

NFL Players State Income Tax Liability

While the state tax liability of players varies annually based on the number of games played, their tax liability is set each year for the majority of the games based solely on the team for which they play. Using the formula that the team plays 8.5 games at home on average every year and three games on the road each season against three set divisional opponents, the table below shows the average state income tax rates that players on every team pay for their set 11.5 games (all data provided by The Tax Foundation).

Note that this table makes simplifying assumptions: each player pays the top state income tax rate in that state. It also does not factor in income tax rate progression or the location of the remaining 6.5 road games each season, which vary substantially from year to year.

The Tax Dominance Of NFL Teams In The AFC South

A total of seven NFL teams play their home games in states that do not levy an income tax, corresponding with a minimum average of 8.5 games played each season in a 0% state tax rate environment. However, because of the jock tax, that alone does not determine their state income tax liability. Significant variation results from the away games the athletes play. For instance, the Miami Dolphins have three road games in states with high tax rates on top earners (New Jersey, New York, and Massachusetts).

Meanwhile, teams in the AFC South face a low tax rate on the majority of their 11.5 predictable games. Three of these teams play in states with no income tax rate (Houston Texans, Jacksonville Jaguars, and Tennessee Titans), and the fourth team plays in a jurisdiction with a low state income tax rate (Indianapolis Colts – three percent). This results in an average state tax rate across the 11.5 predictable games of 0.26% for the Texans, Jaguars, and Titans, and 2.22% for the Colts.

When contrasting the near 11% difference in tax rates for the Texans, Jaguars, and Titans relative to teams like the Los Angeles Rams and San Francisco 49es, and given the size of the NFL contracts (Dak Prescott, QB of the Dallas Cowboys will make $60 million), playing for a low-tax rate team can result in millions of dollars of tax savings annually for many NFL players.

The Jacksonville Jaguars Offer The Strongest Tax Benefits In The NFL

Among the teams with three lowest state income tax rates, players for the Jaguars appear to have the most substantial tax benefits as Florida has the 14^th best sales tax rate and 21^st best property tax rate (36^th and 40^th for the Texans and 47^th and 33^rd for the Titans for sales tax and property tax, respectively), according to The Tax Foundation. In fact, the differences in sales and property tax rates may be so significantly more substantial for Florida-based teams than those in Texas and Tennessee that players playing for the Tampa Bay Buccaneers (1.10% average state income tax rate) and Miami Dolphins (2.67% average state income tax rate) may enjoy more substantial overall tax benefits relative to the Texans and Titans. Regardless of where these other teams fall in the pecking order when considering other taxes, playing for the Jaguars appears to have the most substantial tax benefits in the NFL.

The Tax Cost Of Playing For the NFL In California

On the flip side, teams playing their home games in California appear to be the most disadvantaged. Despite playing one road game a year in Washington (0% state income tax rate) and Arizona (2.5% state income tax rate), the Rams and 49ers players face an average state income tax rate of 11.20%. This tax burden is anchored by the steep 13.30% top state income tax rate levied by California. As the Rams and 49ers play at least 8.5 home games and one road game in California, athletes playing for these two teams typically face the highest state income tax burdens, on average, in the NFL.

Other teams are also significantly burdened by the higher tax rates they face due to the location of their games. Teams like the Buffalo Bills, New York Jets, New York Giants, Minnesota Vikings, and New England Patriots play their home games in high state tax rate jurisdictions, and their divisional road games are also located in high-income tax rate states. Given the NFL’s hard salary cap documented by Forbes, the differential tax liabilities can impact a team’s performance on the gridiron.

While Hill made a so-called grown-up decision to play for the Dolphins, this article highlights that the most grown-up decision would involve him playing in the NFL for fellow Florida-based teams, such as the Buccaneers or the Jaguars. This article highlights the significant tax benefits that the Jaguars offer incremental to those of other Florida NFL teams. A Forbes article documents the impact that taxes can have on where athletes choose to play. Importantly, as players often choose to play for multiple teams throughout their careers, given the significant variation in state income tax rates, the financial numbers highlight that taxes are not everything when making this important decision.

However, for players like Trevor Lawrence (Quarterback of Jacksonville Jaguars earning $55 million in 2025), Danielle Hunter (Defensive End of the Houston Texans earning $35.6 million in 2025), or Jeffrey Simmons (Defensive Tackle of the Tennessee Titans earning $23.5 million in 2025) (all numbers provided by spotrac), the tax savings some NFL players have over others is clear, tangible, and material.