NHL free agency shows teams in states with no income tax have an advantage

When the Tampa Bay Lightning made moves at the NHL draft to clear salary cap space, general manager Julien BriseBois hoped a variety of factors would entice players to sign as free agents.

One, of course, was the organization's penchant for winning and the talent already on the roster. Another, he pointed out, was the “favorable taxation situation.”

It has become difficult to deny the impact of favorable tax situations around the league in recent years. Four of the past five Stanley Cup champions are based in places with no state income tax, and that benefit continues to draw free agents who know they will take home more money there than elsewhere around North America.

“There is a distinct advantage for those teams that are in states with no tax — always,” said Alan Pogroszewski, who has studied and worked with players on tax matters for more than a decade. “There will always be an advantage.”