The clock is winding down on summer, which means fall sporting events are near. Baseball’s pennant races will start to heat up, the NFL season will begin, and basketball will soon return. As the season begins, many eyes will be turned toward Jeremy Lin, the Taiwanese–American point guard who became an overnight sensation last year playing for the New York Knicks after years of warming various benches. While his season was cut short due to a torn meniscus, his 26 games were enough to ignite “Linsanity,” with New York bars and restaurants introducing “Lintinis,” Asian–spiced chicken “Lings,” and Asian–inspired “lin–burgers” for beleaguered Knicks fans who finally had a reason to cheer.

At the end of the season, Lin became a restricted free agent and ended up signing a three–year, $25.1 million deal with the Houston Rockets, after the New York Knicks did not match their offer. So, what does such a large contract mean for Lin’s tax bill?

Regardless of where he plays, he pays federal income taxes at the top marginal rate of 35%. He also pays Medicare tax of 2.9%. If the Bush tax cuts expire at the end of the year, as they’re scheduled to do, that top rate will rise to 39.6%. And the Medicare tax jumps to 3.8% on January 1, as tax increases included in the Affordable Care Act take effect. But at the state level, there is a big difference between the taxes he owes in New York versus what he’ll owe in his new home state of Texas. In “New York, New York” Frank Sinatra sings “If I can make it there, I’ll make it anywhere.” What ol’ Blue Eyes probably meant is that if he could afford the taxes there, he can afford them anywhere. New York State’s tax rate is 8.82%, while New York City’s is an additional 3.876%. But neither Texas nor Houston impose any income tax. None! So this difference could mean as much as a million dollars more per year in Lin’s pockets (perhaps Lin knew what was he doing when he signed with Houston – he did graduate with an economics degree and a 3.1 GPA).

Of course, as is usually the case with taxes, things aren’t quite so simple. Professional athletes pay state and local taxes wherever they play, so when Lin travels back to NYC to play the Knicks, he’ll once again have to pay local taxes. However, when he plays the Orlando Magic or Miami Heat, he’ll enjoy the same zero percent tax rate in Florida that he gets in Texas. And of course, he can deduct state and local taxes he pays from his federal taxable income.

While you may not be a rising NBA star, knowing which states have income tax rates and which don’t can help you plan appropriately for your finances!