Dak Prescott In college Signed extensively With the Dallas Cowboys. The contract was years in the making, with both sides going back and forth. The Cowboys slapped the franchise tag on Prescott last season; This earned him a lot of money, but there was no job security.
So for four years, signing the $ 160 million agreement was a big relief for Presscott. The contract includes a $ 66 million bonus (NFL record) and a $ 126 million guarantee.
Thanks to the way the money guarantee is dealt with – and a favorable living situation – Prescott will make almost as much money as the guarantee Patrick mahoms, Who signed a record-setting, ten-year extension with Kansas City chiefs last year, including $ 141,428,000 in guaranteed wages.
If Presscott wants to live in Texas, it will not have the benefit of any state income tax. As Sportico first reported, Means that he will put in a little over $ 75.5 million of his $ 126 million guaranteed salary.
Mahomes earns $ 15.4 million more than Prescott in guaranteed money, Mahomes will only take home about $ 75.8 million – $ 243,233 more than Prescott.
Mahomes presumably live in Kansas City, which means he will pay 5.4% in income tax and 1% in local income tax. And when you are earning hundreds of millions of dollars, this percentage is an important part of the change.
Prescott is certainly not scot-free. As part of the highest tax bracket, he owes 37% of his earnings to federal taxes. Jock tax are also always prevalent. And even though Texas does not have a state income tax, there are local and sales fees, which can reach 8.25%.
These numbers are only considering the guaranteed share of salary every quarter. If they play through their entire deals with their respective teams, the Mahomes will earn a much larger total.
Nevertheless, this comparison shows the benefit of living in a state with no income tax. And plays very well for Prescott.