Thursday was pay day for Raiders quarterback Derek Carr.
While the numbers haven’t been officially disclosed to the public, The Associated Press reported that Carr’s extension is worth $125 million over five years, which kicks in when his rookie deal ends after this season concludes. That would make him the highest-paid player in terms of annual salary at $25 million per year, slightly more than the $24.8 million Indianapolis quarterback Andrew Luck receives.
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For all the money Carr will receive, he would save a ton in taxes if the Raiders were already in Las Vegas. The team will begin play in the Nevada city in 2020, meaning Carr will have to pay California taxes during the first two years of the extension. According to Jared Walczak of Tax Foundation, the state’s rate is 13.3 percent.
The tax rate in Nevada? Zero.
This means Carr could be taxed more than $3.3 million annually – and that’s before any deductions or credits are applied.
If Carr can backload his deal, it would prove to be a financially sound move.
Carr was enjoying his best NFL campaign last year before a broken leg in Week 16 ended his season – one in which the Raiders finished 12-4 and reached the playoffs for the first time since 2002. The former Fresno State star threw for 3,987 yards, 28 touchdowns and just six interceptions.
The 36th overall pick in the 2014 draft has started 47 games for the Raiders and has amassed 11,194 passing yards with 81 TDs and 31 picks.