It’s been a few days since quarterback Sam Darnold hoisted the Lombardi Trophy after the Seattle Seahawks beat the New England Patriots 29‑13 in Super Bowl LX at Levi’s Stadium.
But the victory came with an unexpected sting. Because of California’s “jock tax,” Darnold will owe roughly $249,000 in state income taxes — more than he earned for playing in the game. After subtracting his $178,000 Super Bowl bonus, the result is a net loss of about $71,000.
Jock taxes, according to news analysis, apply to athletes in jurisdictions where they play or practice. The Seahawks spent about eight “duty days” in California, triggering taxes on a prorated share of Darnold’s annual compensation under his three-year, $105 million contract.
Seattle’s franchise is based in Washington, which has no income tax, allowing Darnold to avoid state taxes on most of his earnings. But the week in California erased that advantage for the championship portion of his income.
The Super Bowl would have cost him either way. Had Seattle lost, Darnold would have earned about $113,000 but still owed roughly $235,000 in taxes.
For players on the winning team, a typical $178,000 bonus shrinks to about $86,000 after federal, state and other deductions. Losing-team players receive about $113,000 and face similar tax treatment.
Policy analyst Jared Walczak created a calculator to estimate player tax bills. New England quarterback Drake Maye, for example, would owe roughly $20,363.
The location of the big game matters. A single week in the Bay Area can trigger a six-figure tax bill, while Super Bowls in no-income-tax states such as Texas, Florida or Nevada allow players to keep far more of their winnings.
Betters will face taxes too
Millions of fans who bet on the Super Bowl now face their own reckoning with the IRS and state revenue departments, according to MSN.
All sports-betting winnings are taxable as ordinary income at the federal level, ranging from 10% to 37%, according to Yahoo Personal Finance. Sportsbooks issue Form W-2G for wins over $600 and may withhold 24% upfront for prizes above $5,000.
State rules vary. In most of the 40 states and Washington, D.C., where sports betting is legal, winnings are taxed as ordinary income. Nine states do not allow gamblers to deduct losses. In states that permit deductions, taxpayers must itemize and can offset losses only against winnings.
A bettor who turned $500 into $10,000 on the Seahawks money line would owe federal tax at their marginal rate — potentially 24% to 37% — plus any state taxes. In states that bar loss deductions, the tax hit is higher.
A key change affects 2026 filings for the current tax year. The One Big Beautiful Bill Act, signed by President Donald Trump in 2025, limits gambling-loss deductions to 90% of winnings. If a bettor wins $1,000 but loses $1,000 on another bet, only $900 can be deducted, leaving $100 of taxable gambling income, according to Yahoo Finance.
For most casual bettors, it’s pretty simple: If your itemized deductions — including gambling losses — don’t add up to more than the standard deduction ($16,100 for single filers and $32,000 for joint filers in 2026), just take the standard deduction and pay taxes on your winnings.
The takeaway: Victory is sweet, but costly when California is involved — and for bettors, a winning parlay feels less sweet once the IRS takes its cut.
As for Darnold, he still owns the one thing no tax collector can touch: a Super Bowl ring.