There was more to the Florida Panthers’ historic Stanley Cup victory in June than just strong play on the ice. The NHL’s hard salary cap has reignited a growing debate inside and outside the league: Are teams in income-tax-free states gaining a structural advantage?
Five of the last six Stanley Cup champions — the Tampa Bay Lightning twice, the Vegas Golden Knights, and now the Panthers twice — are based in states with no personal income tax. Only the Colorado Avalanche’s 2022 title interrupts that trend. And yet, just six NHL teams reside in those states.
“It’s a 15% difference,” Panthers forward Brad Marchand told The Associated Press in 2023. “That’s a huge sum of money when you add it all up.”
Marchand isn’t wrong. Depending on local tax brackets and residency status, a player earning $8 million annually in Florida or Nevada may take home $1 million to $1.5 million more than a peer in California or Ontario.
While the league’s flat salary cap, currently set at $88 million for the 2024–25 season, prohibits teams from offering more on paper, players in tax-free states often walk away with more money in their pockets.
That financial edge may help Florida retain top players such as Sergei Bobrovsky, Aleksander Barkov and Matthew Tkachuk on long-term deals. The Panthers have shown a willingness to make bold trades and signings, but the tax-free structure could quietly push them from contenders to perennial powerhouses.
Still, league officials downplay the role of tax policy in shaping rosters.
“I don’t think that’s a big factor,” NHL commissioner Gary Bettman said during his annual State of the League address in June during the Stanley Cup Finals. “Players want to win, they want a good environment, and they want security. Taxes are just one part of the equation.”
NHLPA Assistant Executive Director Ron Hainsey echoed that sentiment.
“Pittsburgh, Chicago, Los Angeles, Detroit, Boston; those are all teams in higher-tax areas that built dynasties,” Hainsey told Sports Illustrated during recent collective bargaining talks. “Players stayed, and they won. We’re not pretending taxes don’t matter, but we’re also not pretending it’s everything.”
Some former players and analysts, including NHL legend Wayne Gretzky, a Florida resident, have been heard acknowledging the financial incentives of playing in states without income tax. While not officially speaking on behalf of the league, voices like his have added to the ongoing conversation.
Although Florida operated near the upper limits of the cap, salary-tracking sites like PuckPedia show the Panthers carried a playoff roster with one of the highest cumulative cap hits in the league, over $93 million, reflecting an aggressive approach to roster construction under the league’s long-standing long-term injured reserve (LTIR) rules.
Florida’s rise goes beyond tax codes and spreadsheets. Thanks to sunshine, financial stability and now a Stanley Cup reputation, the Panthers have positioned themselves as a top destination for NHL talent. That appeal may only grow.
“We’re trying to win,” Panthers general manager Bill Zito said during the team’s victory parade. “The tax thing is marginal at best. The sun doesn’t kill us. It’s a nice environment to live in.”
Zito may downplay the advantage, but the numbers speak for themselves. And with the league’s current collective bargaining agreement set to expire in 2026, the issue of tax-driven advantages could become a serious topic at the negotiating table.
Until then, Florida will continue to benefit from the advantages of geography, and perhaps, tax code. Recreating a championship formula is difficult, but in this case, it may be partially written into state law.
