Yes, professional athletes pay taxes in several states depending on where they play their games. It is not uncommon to see a W2 with revenue from 7-8 different states stated. The major taxing jurisdictions for athletes are the federal government, states, and their local governments. In state tax matters, athletes file as independent contractors. This means that they do not receive a salary but instead earn a fee for each game they play. The majority of states use some version of the fair market value method to determine the amount of income that should be attributed to an independent contractor. These fees are then subject to federal income tax withholding if the athlete has sufficient wages from other sources to be considered an employee under federal law. States also collect sales tax on the services provided by athletes. The rate of tax varies by state but is typically around 2%. Some states require athletes to register with the department of revenue before they can provide tax-exempt service sales. Others allow them to self-declare. The location at which an athlete provides services is important because it determines the taxing jurisdiction. For example, an athlete who provides services in both Washington and California is required to report those earnings separately so that both states receive their proper share. Professional athletes have more work than most people think.