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Seattle Seahawks general manager John Schneider pointed to a recent decision by Washington state lawmakers that he said could pose problems as the defending Super Bowl champions look to add players to maintain their long-term success.
Washington’s long-standing status as a largely tax-exempt state is set to change in 2028 after lawmakers approved a “millionaires’ tax” that would levy a 9.9% rate on high earners.
The tax will apply to individuals earning more than $1 million per year. Governor Bob Ferguson has indicated he will sign the bill. It is unclear whether the legislation will face legal challenges. Schneider predicted the new tax deduction could hamper the Seahawks’ ability to recruit and ultimately sign free agents.
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Seattle Seahawks general manager John Schneider speaks to the media during the NFL Scouting Combine at Lucas Oil Stadium on February 24, 2026, in Indianapolis. (Lauren Leigh Bacho/Getty Images)
Schneider suggested that part of the team’s pitch to free agents over the years has highlighted Washington’s tax exemptions.
“There was a bunch of agents texting me the other day like, ‘Hey, I can’t use this anymore, buddy,'” Schneider said this week on his Seattle Sports 710-AM radio show.
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“I think it’s for all the professional teams here in town. It’s always been a huge attraction, especially competing with the California teams. That’s been a big deal for us. So it’s going to sting, recruiting-wise and what that looks like. I’m sure Mike Reinfeldt and Mickey Loomis and all the cap guys that have ever been here are looking at this going, ‘Dang.’
Super Bowl LX trophy celebration at Lumen Field on February 11, 2026 in Seattle. (Kirby Lee/Imagn Images)
As of 2026, the Seahawks are one of eight NFL clubs based in a state that does not impose an income tax on individual salaries.
Two of these teams, the Texans and Cowboys, are based in Texas, while three of these teams play home games in Florida: the Jaguars, Buccaneers and Dolphins. The Raiders moved from California to neighboring tax-free Nevada in 2020, while the Titans are expected to open a multibillion-dollar domed stadium in Nashville, Tennessee, in 2027.
Seattle Seahawks helmets before a game between the Seahawks and the Atlanta Falcons at Mercedes-Benz Stadium on December 7, 2025, in Atlanta. (Perry Knotts/Getty Images)
“It’s going to be a problem, and I hope it doesn’t happen,” an anonymous NFL agent told ESPN when asked for his thoughts on the potential impact the new taxes could have on the Seahawks.
While it’s unclear whether the new taxes will influence NFL players’ decisions about signing with the Seahawks, one 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 playing 10 games with the Texas Rangers in 2025, agreed to a deal last month 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 three-year deal instead of two, California’s 13 percent tax rate on income above $1 million proved a key difference.
“I don’t think it’s a secret how much money you take out of your pocket when you go to California,” the right-hander said. “Foul territory.”
