During Game 3 of the 2025 Stanley Cup Final, live on NHL on TNT, former NHL enforcer-turned-analyst Paul Bissonnette directly challenged Commissioner Gary Bettman about state tax disparities benefiting teams like the Florida Panthers.

Bissonnette bluntly proposed the league consider adjusting for state tax differences in the next CBA, saying:

 "How do you expect Canadian teams to win when every guy in Florida and Vegas takes home millions more because of the tax breaks? You think a guy wants to play in Ottawa or Toronto?”

The Commissioner fired back emphatically:

“Will you stop? It’s a ridiculous issue. When the Florida teams weren’t good… nobody said anything about it. … Could it be a little factor if everything else were equal? I suppose, but that is not it… What are we going to do? Subsidize teams in New York or L.A.?”

He also cheekily threw a jab at Bissonnette’s studio attire, calling it “suspect” and casting doubt on his objectivity .

When fans talk about why certain NHL teams dominate—why the Lightning, Panthers, and Golden Knights surged to prominence—they’ll cite coaching, scouting, or cap management. But an invisible hand shapes this competitive landscape: state income tax policy.

In the NHL, where a hard salary cap rules and superstars are traded for future picks as often as they’re signed long-term, tax laws are among the most powerful, and least discussed, advantages a franchise can have.

The NHL’s Salary Cap Illusion

The NHL is a capped league. In 2024–25, the cap is set at $88 million, with a minimum team spend (floor) of $65 million. That cap applies regardless of geography. A dollar in Calgary or Montreal is the same as a dollar in Las Vegas or Tampa on paper. But in practice? Players don’t take home the same amount depending on where they sign. In fact, after-tax income varies dramatically by state and province.

The NHL’s Uneven Playing Field

Team

Local Income Tax Rate

After-Tax Salary on $10M

Vegas Golden Knights

0% (Nevada)

$5.68M

Tampa Bay Lightning

0% (Florida)

$5.68M

Dallas Stars

0% (Texas)

$5.68M

Nashville Predators

0% (Tennessee)

$5.68M

Toronto Maple Leafs

53.53% (Ontario)

$4.65M

Montreal Canadiens

53.31% (Quebec)

$4.67M

Los Angeles Kings

50.3% (California)

$4.82M

New York Rangers

50.15% (New York)

$4.83M

We can see here that on a standard $10 million salary, a player in Tampa takes home over $1 million more per year than one in Toronto.

Free Agency Trends

From 2018 to 2024, the majority of top-tier free agent signings (contracts of 5+ years at $6M+ AAV) have gone to teams in low or no-tax states.

Top free agency destinations by total cap hit signed since 2018:

1. Vegas Golden Knights – $244M

2. Dallas Stars – $212M

3. Tampa Bay Lightning – $207M

4. Florida Panthers – $201M

5. New York Rangers – $197M

But adjusted for after-tax income, the rankings change:

Top destinations by after-tax value received by free agents:

1. Vegas Golden Knights – $153M

2. Tampa Bay Lightning – $148M

3. Florida Panthers – $147M

4. Dallas Stars – $146M

5. Nashville Predators – $143M

This reveals something critical: High-tax markets are effectively overpaying by millions just to stay competitive. A $7.5M player in Toronto is the same as a $6.1M player in Vegas without any cap relief for the Leafs.

Keeping Core Players Cheap(er)

Teams in no-tax states can not only attract stars, but they can keep them for less. Here are some notable examples:

• Brayden Point signed an 8-year deal worth $76M. After-tax value: $43.2M

• To match that net income in Montreal, a player would need to earn $93.4M, which would violate the salary cap.

• Same goes for Mark Stone (VGK): $9.5M AAV = ~$5.4M after tax. The same player in Ontario would need $11.5M AAV to match it, which is impossible under the current cap.

Teams in low-tax states can offer players more value for less cap hit, giving them breathing room to build deeper rosters.

Success Follows Savings

Consider team success since 2015 (as tax-savvy cap strategy has become more prevalent):

Team

Income Tax Rate

Playoff Appearances

Cup Final Appearances

Cups Won

Tampa Bay Lightning

0% (FL)

9/10

3

2

Vegas Golden Knights

0% (NV)

5/6 (since 2017)

2

1

Dallas Stars

0% (TX)

6/10

2

0

Florida Panthers

0% (FL)

5/10

2

2

Toronto Maple Leafs

53.53% (ON)

8/10

0

0

Montreal Canadiens

53.31% (QC)

4/10

1

0

Over this period, three of the four Cup-winning teams have been from no-tax states.

The NHL’s Cap is Not Net-Adjusted

The NHL’s Collective Bargaining Agreement does not account for cost-of-living or taxation differences. Every team has the same salary cap. This creates structural inequality:

• Players who prioritize take-home pay choose low-tax states.

• High-tax teams must offer extra perks like bonuses, front-loaded money, and NTCs to stay in the bidding war.

• Long-term, this creates roster value inflation in places like Toronto, Montreal, and Vancouver.

For example, Auston Matthews and Mitch Marner are elite talents, but their cap hits are functionally ~15–20% higher than their Florida/Vegas equivalents when adjusted for tax.

What Could Be Done? And Will It?

Option 1: Net Cap Adjustment

Cap hits could be weighted based on after-tax income. Unlikely due to CBA complexity.

Option 2: Luxury Tax Redistribution

Revenue sharing already exists, but could expand to include tax disparity buffers.

Option 3: Roster Bonus Flexibility

Teams in high-tax areas could be allowed greater bonus flexibility to offset take-home deficits.

Realistic Outcome?

Nothing changes. Why? Players’ union members prefer low-tax states. GMs in those markets love the advantage. There’s no collective incentive to eliminate this structural imbalance.

The Rich Get Richer (Quietly)

Tax laws aren't sexy. They're not visible like a power play or a game-winning goal. But they are devastatingly effective. In a league obsessed with parity, the quiet pull of income tax laws has helped build champions in Florida, Vegas, and Texas.

If you're wondering why Toronto can't keep depth, why Calgary keeps bleeding stars, or why Florida seems like a magnet for elite free agents, and the answer might not be coaching or grit.

It might just be the IRS never calling.