Now California is a ‘gem’ on taxes. Let's say he moved before this weekends tournament in San Diego. Assume he just barely makes the cut and earns $1000 dollars.
Next say this is the only money he earned in California in the year.
Does he get taxed at the rate of earning $1000 dollars on his California taxes, No he gets taxed at the max rate. He must show his total earnings for the year $100 million, add the $1000 then tax the $1000 dollars at the $100 million rate.
Honestly it's not that simple as the State of California believes in the 5 days he is there at the tournament the endorsement money should also be taxed at 5/365 for the money earned in California.
It insidious.
Unfortunately Texas's property tax is amongst the highest offsetting no income tax. here are the best States for lowest taxation once you add all the the various taxes up (not inc Fed.) Source About.com
•Alaska at 6.4% of income
•Nevada at 6.6% of income
•Wyoming at 7% of income
•Florida at 7.4% of income
•New Hampshire at 7.6% of income