Jayson Tatum recently secured the richest contract in NBA history by signing a five-year, $315 million extension with the Boston Celtics, surpassing Jaylen Brown’s huge deal last year. However, he will have to give up a huge chunk of his yearly salary in taxes.
With his new contract, the five-time NBA All-Star will earn $63 million annually, but he will only take home roughly $25.2 million in net pay, as Andrew Petcash of Profluence computed.
Jayson Tatum’s income after taxes:
$62.8M: Salary
$23.2M: Federal Tax
$4.7M: Jock Tax
$8.1M: Escrow + Agent
$1.4M: FICA/Medicare
= $25.2M: Net Income
The taxes are a big hit to Jayson Tatum’s finances, especially after winning his first NBA championship this year. However, earning $25.2 million in annual salary is still way above average, since most people won’t earn that much in their entire lifetime.
In addition, Jayson Tatum has a player option in the final year of his deal worth $71.4 million, equivalent to the total career earnings of former NBA stars like Roy Hibbert and Danny Granger (for context). And if he keeps this up as he approaches his 30s, it’s safe to assume that he’s in for another lucrative contract.
Boston Celtics poised to repeat
Other than locking down Jayson Tatum to a long-term deal, the Boston Celtics also did the same to Derrick White, giving him a four-year, $125.9 million extension, including a player option.
Furthermore, the Boston Celtics gave Xavier Tillman and Neemias Queta multi-year deals, while Luke Kornet was brought back on a one-year contract.
The starting five of Jayson Tatum, Jaylen Brown, Jrue Holiday, Derrick White, and Kristaps Porzingis are worth around $939 million in contracts for the Boston Celtics, helping them maximize their championship window amid talks of selling the team.
