The Los Angeles Lakers had a splendid night being the first team to win the new In-Season Tournament of the NBA. The Pacers vs Lakers matchup was bound to be an action-packed game. And nobody left disappointed. Getting ready to take that trophy and money back home, it looks like LeBron James and co. might hit some snags.

The $500,000 to each player on the roster was the biggest incentive. But we all forget that there is this three-letter word that takes the joy away – tax.

LeBron James might not take home the $500,000

After the federal tax, California taxes, and payroll taxes, it leaves the players with $231,000 in their pockets. That’s $269,000 lost in taxes. The surface looks shiny, but the open package doesn’t carry the $500k weight.

Not that LeBron needs those $500k to survive, but the prize money for each player was a great hook for teams to put their best foot forward. Not to mention, those who do not make a quarter of what top names like James or Curry, could have certainly benefitted.

Christmas is getting closer, and it’s a naked truth that after every passing year, December expenses outscore any other month. Just another aspect that shows a high-earning athlete’s life is not all glitz and glam. On that topic, why don’t we take a look at the taxes NBA players are stipulated to pay?

A quick look at the different taxes the NBA players have to pay

Put simply, there are about four different taxes an NBA player has to pay. Namely, Federal, State Income, Jock, and Agent fees. All of these are pretty self-explanatory. And many of you might already be paying one or, at most, two in this list. Anyway, why don’t we do a quick dive?

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For the sake of clarity, let us imagine the player we are talking about has an annual salary of $40 million, and endorsements bring in $60 million. The total is $100 million.

1.  Federal Income Tax: These taxes can go up to 37% for high-earning professionals. So, for the above said player, this means $37 million in federal taxes alone.
2. State Income tax: This might be slightly confusing in that it almost sounds similar to jock tax. But the simple idea is that its the tax levied by the state one lives in and works. So this is also not isolated to the NBA players.
3. Jock Tax: This one is a real headache for anyone who plays for the NBA league. While LeBron might have to pay the state income tax of California, he is also subject to income tax for playing in the state. And this extends to every state he or any team will visit. Depending on the rates set by each state, these numbers can vary.
4. Agent Fees: Finally, there are the agent fees. While this isn’t necessarily a tax per se, it still holds value. Players are usually required to pay 3-5% of their earnings to their agents.

Now you have a rough idea of the number of pages these players will have to go through by the end of the year. There are, of course, a lot of little itty bitties that change. But the basics don’t.

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