Juan Soto can use an interesting tax loophole with his monster contract with the Mets.
Soto and the Mets have agreed to a 15-year deal worth a total of $765 million in a blockbuster deal that shook the sports universe.
The Post’s Jon Heyman reported that Soto received a $75 million signing bonus, which is not susceptible to enormous New York state income taxes as the slugger is a resident of Florida which does not tax personal income.
Therefore, after federal income taxes, which are 37 percent in the highest bracket, Soto will take home $47.25 million of his signing bonus, after relinquishing $37.75 million in taxes.
If Soto received this income in New York, he would have had to relinquish in the neighborhood of $8 million more in taxes.
The New York State income tax rate for earnings in excess of $25 million is 10.9 percent, and nearly all of Soto’s signing bonus would have been susceptible to these taxes had he lived in New York.
Per Heyman, Soto will receive about $120 million total comp in 2025.
Subtracting out the signing bonus, leaves $45 million in pay for playing next season.
While about half of this money would not be counted as New York income because athletes are taxed locally for road games, it still brings him near the $25 million threshold for the top marginal tax rate.
Soto will take home a little less than the $47.25 million after kicking the customary 3-4 percent fee to agent Scott Boras, but he shouldn’t have much of a problem picking up the check at dinner anytime soon.
