NFL Blockbuster Trades Send Players’ Tax Bills Soaring By Millions

MoneyTaxesNFL Blockbuster Trades Send Players’ Tax Bills Soaring By MillionsByNathan Goldman,Contributor.Forbes contributors publish independent expert analyses and insights. Nathan Goldman is a tax prof. at NC State Univ.Follow AuthorJun 01, 2026, 07:35pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Myles GarrettGetty ImagesTwo NFL megastars are on the move, with Defensive End Myles Garrett heading from the Cleveland Browns to the Los Angeles Rams. Meanwhile, Wide Receiver A.J. Brown will be going from the Philadelphia Eagles to the New England Patriots. While both players will now play for teams that are expected to compete to become Super Bowl champions, each player will now be facing millions less in after-tax earnings due to significantly higher state income tax liabilities while playing for their new teams. The NFL Salary Cap And June 1st NFL TradesThe NFL operates under a salary cap, meaning that teams must carefully orchestrate how much money they spend on players each season. For the upcoming 2026-27 NFL Season, the salary cap will be $301.2 million per team, according to NFL.com. While determining the total players’ salaries during a football season can be straightforward, nuances like players’ signing bonuses can create complexities when figuring out when and how that one-time payment should be allocated to the salary cap.The NFL created June 1st as the arbitrary day when the league will shift from one football season to the next from a financial standpoint. The team the player is on at the beginning of the day on June 1st will direct how that prorated signing bonus will be applied when determining the salary cap costs. Because of this date, many teams wait until June 1st to trade players, as it is beneficial for one team to hold the player on the roster as of June 1st versus another team. To illustrate, consider Garrett’s $41.09 million signing bonus. If Garrett were traded befo...