We’ve already determined that Howard will play 49 games in states with no income tax, meaning he will play 33 games in states
with a tax. If we throw in another 5 playoff games located in taxable jurisdictions, we get a total allocation of duty days of 38/270, meaning 14% of Howard’s total earnings of $87.6 million over the life of his contract – or $12.3 million — will be subject to state income tax. At an average rate of 5%, Howard will pay approximately $600,000 of state income tax over the four year period. This means that by signing with the Houston Rockets, Howard could save approximately $15.1 million ($15,700,000 less $600,000) in state income taxes on his next contract