It has barely been two months since the Seahawks hoisted the Lombardi, and the franchise is already staring down a seismic shift. The team is up for sale, key players have hit free agency, and now a new Washington state tax law is piling on the financial pressure. General Manager John Schneider knows this math won’t add up in the Seahawks’ favor.

On Wednesday, March 11, the Washington state Senate passed a landmark measure in a 27-21 vote. That marks the state’s first-ever income tax. The legislation now sits on the desk of Governor Bob Ferguson, who has already pledged to sign it. 

If signed, the law will impose a 9.9% tax on all personal income above $1 million annually, known as the “millionaires tax.” For the Seahawks, this law changes the game.

“It’s gonna sting. There’s no question about it,” John Schneider said on the Seattle Sports 710-AM radio show. “All the pro teams here in town, [not having a state income tax has] always been a huge attraction, especially competing with the California teams. It’s been a big deal for us. So, yeah, it’s going to sting from a recruiting standpoint.”

For decades, Washington state had no state income tax, and that gave every Seattle sports franchise a natural edge in attracting talent. For NFL players specifically, taxes are not a simple matter of filing one return, as the league operates under what is known as the “jock tax.” 

Every player earns income in every city they play, and they are required to file tax returns in every state they visit for away games. When Seahawks players traveled for away games, they paid taxes in those states. Now, with this new law, they will pay at home, too. 

The new tax regime technically applies to just one-half of 1% of the Washington residents, meanwhile, provides rebates for lower-income households. In NFL terms, that small slice of the population covers virtually every player on Seattle’s active roster.

That is because the NFL’s league minimum salary for a player with just one year of experience stands at $1.005 million in 2026. In other words, almost every player in the Seahawks locker room would fall under this new tax regime from day one of it taking effect if they are still with the team when it becomes effective.

That reality is already registering with the people who negotiate player contracts for a living. John Schneider confirmed that agents have taken note, and some have already begun reaching out to signal that Seattle’s old tax advantage no longer applies. 

“There were a bunch of agents texting me the other day like, ‘Hey, can’t use that anymore, buddy,'” Schneider added on the show.

However, there is some breathing room. The new regime does not take effect until 2028, with the first payments going out in 2029. Until then, the Seahawks can continue conducting business as usual, using the tax-free advantage to recruit free agents for the next two offseasons.

But what is happening in league circles right now suggests that the window is already closing in the minds of players and their representatives. It is not just Schneider raising the alarm.​

John Schneider’s fears echo across the league as agents sound the alarm

According to ESPN, several agents have expressed concern about the prospect of their clients paying nearly 10% of their income in state taxes. The fear is that Seattle’s championship brand may not be enough to offset what players stand to lose financially once the law kicks in.

“It’s going to be a problem, and hopefully it doesn’t happen,” one agent told ESPN.

To be fair, John Schneider and the agents raising red flags are not the only voices in this conversation. Some believe the impact on actual deal-making will be modest. Their argument: other cities carry far higher income tax burdens and still routinely land elite free agents.

One such example is that of the Rams and 49ers. The state of California has one of the highest income tax rates in the country at 13.3%, and yet they have never struggled to attract talent. 

A prime example is former Seahawks linebacker Bobby Wagner. He signed a five-year, $50 million deal with the Rams in 2022, despite California’s steep taxes. The deal averaged $10 million per year. 

Even though Wagner returned to Seattle a year later, the difference in the deal value was stark. He signed a one-year, $5.5 million deal with the Seahawks in 2023. In short, high taxes won’t be a problem as long as they offer a deal big enough to absorb the cost. But for Schneider, this law will make every negotiation table tougher to sit at.