
Kelsey Plum took a pay cut to stay with the Los Angeles Sparks for another season.
The two-time WNBA champion and four-time All-Star could have signed a $1.4 million supermax deal under the new CBA. However, she opted for a one-year deal worth $999,999, just one dollar shy of a million bucks.
Fans suggested that Kelsey purposely stayed below the $1 million threshold to forego the California Mental Health Services Act, known as the MHSA or “millionaire’s tax.”
She confirmed as much during a recent interview with YouTuber Austin Franklin.
“I saved like $13,000 in not claiming a dollar,” she explained, also revealing that fans have been offering her $1 everywhere she goes.
Check her out below:
Turns out that Plum wouldn’t have incurred any extra taxes if her contract were worth $1 million.
The state’s millionaire tax only kicks in after $1 million, so that first million wouldn’t have cost her anything under the act. A salary of $1,000,001, however, would have triggered a 1% tax, amounting to $10,000.01.
So she actually did not save $13,000 by staying one dollar under $1 million, but she would have paid $14,0000 on a supermax, which would still leave her with a much better deal.
A basic understanding of taxes, their brackets, marginal rates, etc should be taught in every high school in America. In no circumstances are you “saving money” on taxes by turning down any amount of raise. The $1 would be taxed higher than the rest, that’s it ,” someone said in the comments.
A basic understanding of taxes, their brackets, marginal rates, etc should be taught in every high school in America. In no circumstances are you “saving money” on taxes by turning down any amount of raise. The $1 would be taxed higher than the rest, that’s it
— Aaron Judge Burner (@yankeesfan1213) May 2, 2026
Fortunately for Kelsey, she’ll be negotiating a new deal in a year’s time.
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