Don't you just love it when people grossly exaggerate things? They love making a mountain out of a molehill to generate talking points. Well, it seems like Canada is at it again, making a big deal out of... "no income-tax states."
More specifically, it's NHL teams in no-income tax states. These teams have an alleged advantage over the competition, causing anguish and a river of tears from north of the border. But is there some truth to the accusations? Do teams from no-income tax states truly have an advantage over their fellow teams?
Believe it or not, the Athletic focused on such an issue, particularly from Dom Luszczszyn. He had a comprehensive study that found some astonishing numbers.
So let's look at this issue further by looking at the six teams in no-income tax states. That consists of the Vegas Golden Knights, the Dallas Stars, the Tampa Bay Lightning, the Florida Panthers, the Seattle Kraken (they have a capital gains tax in Washington state, but no general income tax), and the Nashville Predators. What did this study find, you ask?
How much of a discount do 'no-state-tax' teams actually get?
— dom 📈 (@domluszczyszyn) July 10, 2025
A look at the last five years of UFA contracts and one reason why the Panthers get the most out of their tax situation.https://t.co/Cq6UcXki9D pic.twitter.com/yWqqy47oqv
Upon first glance, the Panthers and the Golden Knights might get plenty of advantages from their tax situations. Both teams have utilized signing bonuses extremely well, too. However, a deeper glance shows that seven of the ten teams in the top ten aren't from no-income tax states. There are as many Canadian teams in the top ten as teams from no-income tax states.