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Seattle Seahawks general manager John Schneider highlighted a recent decision by Washington state lawmakers that he believes could pose problems as the reigning Super Bowl champions look to add players to sustain long-term success.
Washington’s long-standing status as a largely tax-free state is set to change in 2028 after lawmakers approved a “millionaire tax” that would levy a 9.9% rate on high earners.
The tax will apply to individuals earning more than $1 million annually. Gov. Bob Ferguson has indicated he will sign the bill. It is unclear whether the legislation will face legal challenges. Schneider projected the new tax deduction could hinder the Seahawks’ ability to recruit and ultimately sign free agents.
Schneider suggested that part of the team’s pitch to free agents over the years has highlighted Washington’s tax exemptions.
“There were a bunch of agents texting me the other day like, ‘Hey, can’t use that anymore, buddy,’” Schneider said this week on his Seattle Sports 710-AM radio show.
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“I think it is for all the pro teams here in town. It’s always been a huge attraction, especially competing with the California teams. It’s been a big deal for us. So, it’s going to sting, from a recruiting standpoint and what that looks like. I’m sure Mike Reinfeldt and Mickey Loomis and all the cap guys that have been here before, too, are looking at this like, ‘Dang.’”
As of 2026, the Seahawks are one of eight NFL clubs based in a state that does not impose income tax on personal wages.
Two of those teams, the Texans and Cowboys, are based in Texas, while three of those teams play home games in Florida: the Jaguars, Buccaneers and Dolphins. The Raiders relocated from California to the neighboring tax-free Nevada in 2020, while the Titans are set to open a multibillion-dollar domed stadium in Nashville, Tennessee, in 2027.
“It’s going to be a problem, and hopefully it doesn’t happen,” an unnamed NFL agent told ESPN when asked about thoughts on the potential impact the new taxes could have on the Seahawks.
While it remains unclear whether the new taxes will influence NFL players’ decisions about signing with the Seahawks, an MLB player recently cited California’s higher tax rates in his decision to turn down a deal with the San Diego Padres.
Merrill Kelly, who entered the free agent market after pitching in 10 games with the Texas Rangers in 2025, last month agreed to a deal to return to the Arizona Diamondbacks.
Kelly agreed to a two-year contract worth an estimated $40 million with the Diamondbacks, according to ESPN. Although the Padres offered a comparable deal at three years instead of two, California’s 13% tax rate on income above $1 million proved a key difference.
“I don’t think it’s any secret on how much money you get taken out of your pocket when you go to California,” the right-hander told “Foul Territory.”
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