Paychecks Bigger in Texas: Romo Highest Paid NFL Player Due to No State Income Tax

Dallas Cowboys quarterback Tony Romo, who inked a six-year, $108 million contract last weekend, has the fifth highest salary in the NFL, but he will take home the most money because he plays in Texas, which has no state income tax. 

Because Romo's income tax burden is 39.6% (the top marginal federal income tax rate in the U.S.) and has an estimated liability of $7.12 million, he will earn $752,000 more than New Orleans Saints quarterback Drew Brees, who had been the highest paid player in the NFL before Romo inked his deal.

As Americans For Tax Reform noted, though, "Romo should serve as an example of why businesses and taxpayers are making the move to Texas."

"Under Gov. Rick Perry, Texas has continued to thrive and experience economic growth throughout the recession because of its low tax rates and economic competitiveness," the anti-tax organization wrote. "While a handful of GOP governors are seeking to eliminate or lower their states’ incomes tax rates, such as Gov. Jindal and Gov. Brownback, more players will want to play in states where they will not feel the greatest tax sting. Some teams might even seek to relocate to one of these states."


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