Kelsey Plum is an absolute killer on the hardwood. She's a gold medalist, a WNBA champion, and one of the most marketable faces in women’s basketball. But when it comes to the nuances of the California tax code, she’s shooting airballs. Honestly, it's fine.
The internet recently caught fire over a clip where Plum explained her new contract with the Los Angeles Sparks. The deal is for $999,999. Why not a clean million? Plum claimed that by staying one dollar under the seven-figure mark, she saved herself $13,000 in taxes.
"If you claim a million dollars, I saved $13,000 in not claiming a dollar," she told an interviewer.
It’s a great soundbite. It makes her look like a savvy operator beating the system. The problem is that it’s fundamentally, mathematically wrong.
The Marginal Tax Myth That Won't Die
The idea that crossing a certain income threshold will suddenly make your entire salary taxed at a higher rate is one of the most persistent myths in America. It's the "tax bracket bogeyman."
California, like the federal government, uses a progressive tax system. You don't just "hit" a bracket and lose a chunk of everything you’ve already earned. You only pay the higher rate on the dollars that actually fall into that higher bucket.
In California, the top mental hurdle for high earners is often the "Millionaire’s Tax," officially known as the Mental Health Services Act. It’s a 1% surcharge on personal income above $1 million.
If Plum had signed for $1,000,001, she wouldn't owe an extra $13,000. She would owe 1% on that extra dollar. That’s one penny.
Even if we look at the standard brackets, the jump from a 12.3% rate to a 13.3% rate only applies to the income over the threshold. There is no magical cliff where $1 extra costs you thousands. If there were, nobody would ever take a raise.
Why We Should Stop Playing Tax Police
It's easy to dunk on a professional athlete for getting a math problem wrong. Michael Hiltzik at the LA Times and a dozen Twitter accounts have already done the heavy lifting there. They're right on the facts, but they’re missing the bigger picture of why a player like Plum even thinks this way.
Athletes are bombarded with "wealth management" advice from the moment they sign their first big check. Much of that advice is focused on one thing: California is expensive.
When you play for the Las Vegas Aces—Plum's former team—you enjoy the luxury of Nevada's 0% state income tax. Moving to the Sparks means walking directly into the highest tax environment in the country. It’s a culture shock for the bank account.
If her financial advisor told her that $999,999 was a "cleaner" number for filing or avoided certain administrative headaches, she likely took it at face value. Most of us do the same with our accountants. We don't read the tax code for fun; we pay people to do that for us. Plum’s mistake isn't a character flaw—it’s just a reflection of how confusing and opaque our tax system is.
The Reality of the Jock Tax
Beyond the million-dollar threshold, Plum has to deal with the "Jock Tax." This is the real headache for pro athletes.
Every time the Sparks play an away game in New York, Chicago, or Phoenix, Plum owes taxes to those specific states for the income earned while "working" there.
- Duty Days: Taxes are calculated based on "duty days"—any day spent at a game, practice, or team meeting in a specific jurisdiction.
- Complexity: An athlete might file 15 to 20 different state tax returns in a single year.
- The California Impact: Because California’s rates are so high, she’ll often pay the difference between the away state’s lower rate and California’s higher rate anyway, depending on her residency status.
When you’re dealing with that level of paperwork, worrying about a single dollar starts to seem less like a mistake and more like a symptom of "tax exhaustion."
Plum Is Still Winning the Business Game
Let’s ignore the $13,000 math error for a second. Kelsey Plum is making a massive amount of money outside of her WNBA salary. Her endorsements with Under Armour, Google, and State Farm are where the real wealth is built.
By signing a deal just under a million, she also gave the Sparks a tiny bit of breathing room under the salary cap. In a league where the veteran supermax is still relatively low compared to the NBA, every dollar of cap space matters for building a championship roster.
If she wants to believe she saved $13,000, let her. She’s leading a franchise in a major market, her jersey is selling out, and she’s the face of a league that is finally seeing the investment it deserves.
What You Can Learn From This Mess
If you’re not a WNBA superstar, you still shouldn't fear the next tax bracket.
- Check the Brackets: Look at the actual marginal rates. Don't turn down a bonus or a raise because you think it’ll "put you in a higher bracket" and lower your take-home pay. That’s not how the math works.
- Understand Residency: If you work remotely or travel for work, know where your "tax home" is. State lines matter.
- Ignore the Noise: Celebrities get financial stuff wrong all the time. Use them as a prompt to check your own numbers, but don't take tax advice from a post-game interview.
Kelsey Plum will be fine. Her bank account is healthy, her game is elite, and a one-dollar clerical choice isn't going to change that. Next time she’s at the free-throw line, nobody is going to be thinking about the Mental Health Services Act surcharge. They'll be watching her put the ball in the hoop. That’s what she’s paid for.
Stop overthinking the dollar. Focus on the game.
