Jonathan Kuminga’s $13 million Timberwolves deal saved him insane tax bill over Lakers offer

Jonathan Kuminga agreed to a two-year, $12.4 million deal with the Timberwolves on Wednesday. Soon after this news broke, Shams Charania reported the Lakers’ sign-and-trade offer would have been in excess of three years for at least $12 million per year.

Kuminga’s decision to join the Timberwolves is raising eyebrows, given how much money he would have made if he had accepted the Lakers’ deal.

While it’s true Kuminga would make much more in Los Angeles, he also saved a staggering amount in taxes by taking his talents to Minnesota.

According to California’s Franchise Tax Board, Kuminga would have paid roughly $6.4 million per year in taxes on a $12 million contract if he’d joined the Lakers. He can expect to pay about $3 million in taxes per year on his salary with the Timberwolves, per numbers from the Tax Foundation.

Therefore, Kuminga saved about $3.4 million per year in taxes by joining the Timberwolves over the Lakers.

But that’s not to say going to Minnesota instead of Los Angeles was the wise financial decision. Even with California’s marked increase in taxes, Kuminga still would have made about $5.6 million per year after taxes on that proposed Lakers deal and $3.2 million on his Timberwolves deal.

Kuminga left about $2.4 million after taxes on the table with this decision, which proves that money wasn’t the main factor in his decision to join Minnesota.

if Kuminga doesn’t win a championship with the Timberwolves, he might end up regretting leaving these millions behind by not coming to Los Angeles. Then again, perhaps he just hates paying California taxes, which he is familiar with after spending over five seasons with the Warriors.

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