Seahawks GM John Schneider Warns Washington Tax Could End Free Agency Edge

SEATTLE — The confetti from the Seahawks’ 29-13 victory over the Patriots in Super Bowl LX hasn’t even settled, but General Manager John Schneider is already sounding the alarm on a new threat to the franchise’s dynasty. Washington lawmakers recently approved a 9.9% “millionaire tax” on individuals earning over $1 million annually, a move Schneider claims will cripple the team’s ability to lure top-tier talent in free agency.

The Price of Winning

For decades, Seattle has held a distinct advantage over rivals like the 49ers and Rams: no state income tax. That edge disappears in 2028 when the new levy takes effect. Gov. Bob Ferguson has signaled he will sign the bill, which targets the state’s highest earners. For an NFL roster, where the 2026 league minimum for a veteran is $1.005 million, nearly every player on the active depth chart will feel the bite. Schneider didn’t hold back during his weekly appearance on Seattle Sports 710-AM, revealing that agents are already changing their tune.

• The Rate: 9.9% on income exceeding $1 million.
• The Competition: California (13.3%), New Jersey (10.75%), and New York (10.9%).
• The Safe Havens: Florida, Texas, Nevada, and Tennessee remain tax-free.

The timing is brutal. Seattle is currently navigating a high-stakes offseason, looking to secure extensions for stars like Jaxon Smith-Njigba and Devon Witherspoon. These deals will likely reset the market, and a 10% haircut on a $100 million contract is no small thing. “It’s going to sting,” Schneider said, noting that his phone blew up with texts from agents the moment the news broke.

“There were a bunch of agents texting me the other day like, ‘Hey, can’t use that anymore, buddy.’ It’s always been a huge attraction, especially competing with the California teams. It’s been a big deal for us.”
— John Schneider, Seattle Seahawks General Manager

The Merrill Kelly Precedent

The impact of state taxes on pro sports isn’t theoretical. Just last December, MLB pitcher Merrill Kelly turned down a lucrative three-year offer from the San Diego Padres to return to the Arizona Diamondbacks on a two-year, $40 million deal. Kelly was blunt about the decision, citing California’s aggressive tax brackets as the primary reason he stayed in the desert. NFL agents are watching this closely. If a player can pocket an extra $2 million a year by simply signing with the Jaguars or Cowboys instead of the Seahawks, the “12th Man” advantage might not be enough to close the gap.

Playoff Implications / What’s Next

While the tax doesn’t officially hit bank accounts until 2028, it complicates every long-term contract signed this month. Agents typically look at the “net” value of a deal over its entire lifespan. If Seattle has to overpay by 10% just to match a “tax-free” offer from Las Vegas or Miami, their salary cap flexibility will vanish. This could force the Seahawks to rely even more heavily on the draft, a strategy that worked for the 2025 championship run but remains a risky bet for long-term stability.