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Seahawks GM warns new federal income tax could impact free agency signings

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Seattle Seahawks general manager John Schneider highlighted a recent decision made by Washington lawmakers that he believes could cause problems as the reigning Super Bowl champions look to add players to continue their long-term success.

Washington’s longtime status as a tax-free state is set to change in 2028 after lawmakers approved a “millionaire tax” that would levy a 9.9% rate on top earners.

The tax will apply to people earning more than $1 million a year. Gov. Bob Ferguson has indicated he will sign the bill. It is not clear whether the law will face legal challenges. Schneider pointed out that the new tax deduction could hamper the Seahawks’ ability to recruit and eventually sign free agents.

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Seattle Seahawks general manager John Schneider speaks to the media during the NFL Scouting Combine at Lucas Oil Stadium Feb. 24, 2026, in Indianapolis. (Lauren Leigh Bacho/Getty Images)

Schneider suggested that part of the team’s focus on free agents over the years has highlighted Washington’s tax exemption.

“There were a bunch of agents texting me the other day like, ‘Hey, I can’t use that anymore, man,'” Schneider said this week on his Seattle Sports 710-AM radio show.

SEAHAWKS GM JOHN SCHNEIDER WALKS AFTER AWKWARD KENNETH WALKER III TALK CONTRACT PARADE AT SUPER BOWL LX PARADE

“I think it’s all the pro teams here in town. It’s been very attractive, especially competing with the California teams. It’s been a big thing for us. So, it’s going to sting, from a recruiting standpoint and what that looks like. I’m sure that Mike Reinfeldt and Mickey Loomis and all the cap guys that have been here before, “like him, ‘look at this before.

A general view of the Seattle Seahawks home field

Super Bowl LX award ceremony at Lumen Field Feb. 11, 2026, in Seattle. (Kirby Lee/Images)

As of 2026, the Seahawks are one of eight NFL clubs based in a state that doesn’t charge an income tax on a person’s salary.

Two of those teams, the Texans and Cowboys, are based in Texas, while three of those teams play their home games in Florida: the Jaguars, Buccaneers and Dolphins. The Raiders are moving from California to neighboring Nevada tax-free in 2020, and the Titans will open a multibillion-dollar stadium in Nashville, Tennessee, in 2027.

A look at Seattle Seahawks hats

Seattle Seahawks hats before the game between the Seahawks and the Atlanta Falcons at Mercedes-Benz Stadium Dec. 7, 2025, in Atlanta. (Perry Knotts/Getty Images)

“It’s going to be a problem, and I hope it doesn’t happen,” an unnamed NFL agent told ESPN when asked about his thoughts on the potential impact of the new taxes on the Seahawks.

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While it’s unclear whether the new taxes will affect NFL players’ decisions about signing with the Seahawks, an MLB player recently cited California’s high tax rates in his decision to turn down a deal with the San Diego Padres.

Merrill Kelly, who entered the free agent market after logging 10 games with the Texas Rangers in 2025, last month agreed to a deal to return to the Arizona Diamondbacks.

Kelly agreed to a two-year contract worth approximately $40 million with the Diamondbacks, according to ESPN. Although the Padres offered the same deal over three years instead of two, California’s 13% tax rate on earnings over $1 million proved a big difference.

“I don’t think it’s a secret how much money you get in your pocket when you go to California,” the right-hander said. “Foul Territory.”

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