Seahawks’ John Schneider says ‘millionaires tax’ will ‘sting’ for signing players

Could the imposition of a state income tax on people earning more than $1 million a year affect the ability of pro sports teams in the state attracting players?

Seahawks general manager John Schneider said Thursday that it very well could.

During his weekly radio appearance on Seattle Sports 710, Schneider was asked about what has come to be known as the “millionaires tax,” which got the final approval from the Legislature on Wednesday and now awaits Gov. Bob Ferguson’s pledged signature. The measure would impose a new 9.9% tax on earnings over $1 million a year, with the first payments due in 2029. That is if it survives likely legal and ballot challenges.

Asked if it could come into play in future contract negotiations Schneider said, “It’s gonna sting; there’s no question about it.”

Schneider referenced that the state has not previously had a state income tax and said, “It’s been a huge” advantage.

Schneider said he had “a bunch of agents” texting him on Wednesday saying, “Hey, can’t use that anymore buddy, you know?”

The tax could come into play on any free -agent contract the Seahawks sign since the NFL minimum salary in 2026 for any player who has played one season is set at $1.005 million.

Schneider said he thinks it will impact all the pro teams in the area.

“All the pro teams here in town, it’s always been a huge attraction, especially competing with the California teams (which does have a state income tax),” Schneider said. “It’s been a big deal for us. So yeah it’s going to sting from a recruiting standpoint.”

Schneider mentioned a few of the team’s previous salary-cap executives and said “all the cap guys that have been here before, too, are looking at this like ‘dang.’ ”

The Seahawks have signed only three external free agents so far since the new league year began Wednesday, each to one-year deals.

That appeared to be by design as the Seahawks are thought to be saving cap space to sign receiver Jaxon Smith-Njigba and cornerback Devon Witherspoon to extensions that could make each among the highest-paid players at their positions.