Why Tax Rules Could Complicate a Carey Price Trade

Trade chatter around Carey Price is heating up again, with Marco D’Amico of RG.rog suggesting that a deal could take place in the next few days. With Price’s bonus out of the way, it does make sense that a few teams would be open to acquiring Price’s contract, but a surprising factor could complicate any deal: taxes.

With Price set to receive a $5.5 million signing bonus this weekend, his contract becomes even more appealing to teams looking for cap relief. After the bonus is paid, he carries just a $2 million salary while still accounting for a $10.5 million cap hit — a valuable tool for franchises trying to reach the salary cap floor without spending real money.

Teams like San Jose or Chicago have been floated as potential destinations, and Price has said in the past he’d waive his no-trade clause if it helped the Canadiens. But according to NHL insider Jeff Marek, there’s a possibility that tax rules could affect his willingness to move. Marek writes, “I’ve always wanted to see a player refuse to waive his no-trade clause as the team tries to move his contact as we expect here.”

He adds:

“There is a scenario, I think, where a player agreeing to waive would end up paying more taxes with the new team. But I don’t know how taxes work for a player who can’t play but is getting paid. Is he still taxed according to the team’s home/road sked or just where he’s living?”

Some fans and analysts have speculated that, depending on how the NHL handles taxation for players on LTIR, a trade could leave Price facing a higher tax burden in certain U.S. states compared to Quebec. Alternatively, if he were traded to a team with no state tax, could he take home more?

Will This Affect a Price Trade and What He’s Willing to Accept?

As they’ve done in the past, Montreal could place Price on LTIR, using his cap hit to create roster flexibility. But for other clubs, adding his contract could provide similar strategic value — if Price agrees to the move.