The Houston Rockets signed multi-time All-Star James Harden to a massive four-team deal at the Brooklyn Nets. Of course, the initial discussion is around what the impact will be on all the teams involved.
The Nets now have three stars, Harden, Kevin Durant and Kyrie Irving. The Rockets finished with Victor Oladipo and a select few picks. The Indiana Pacers got rid of their disgruntled star at Oladipo and acquired Caris Levert, who should fit well. And the Cleveland Cavaliers produced Jarrett Allen, a solid piece.
Not paying as much attention: How much money Harden would have to pay to pay taxes. He turned down a record-setting contract extension of $ 103 million over two years. This would top $ 133 million on Harden’s current deal.
Instead, he would earn that money over the next three years as a member of the Nets. And he would pay zero percent of the state income tax in Texas from 12.7 percent in New York.
As reported by Sportico, Harden will pay $ 49.21 million in federal taxes, where he plays. If he were still in Houston, he would pay a total of $ 3.26 million over the next three years. After being traded to the Nets, he will now pay $ 16.89 million in those taxes over the next three years – an increase of about $ 13.6 million.
This means Harden’s take-home salary will be $ 66.9 million over the next three years. If he was still on the rocket, he would earn $ 80.53 million in the same time period.
Harden would be likely to pay more to live in Brooklyn or Manhattan should he choose to do so. Average cost of living Brooklyn is 92% higher than Houston, while Manhattan is 165% higher.
To date, Harden has already earned $ 225 million in salary and support. So he is not hesitating at all for money. Still, he is leaving quite a bit of money on the table – and chances are he is spending more – in his quest for a championship.