While Ontario?s top combined federal/provincial marginal rate is high at 53.53 per cent, California?s combined tax rate comes close, at 52.65 per cent, consisting of a 37 per cent U.S. federal rate, a 2.35 per cent medicare tax for high-income earners and a California state income tax rate of 13.3 per cent.
Based on a five-year, US$189.7 million max contract the Raptors could give Leonard, his annual income works out to US$38 million. Adam Scherer, a tax partner at Crowe Soberman LLP who wrote a recent blog about the subject, estimated that Leonard?s additional tax bill from playing for the Raptors versus playing for a California team (assuming the same annual salary) would be a mere $300,000 ? chump change for Leonard and less than one per cent of his gross income.
