Crucifying California taxes carve up Walker Kessler’s $130M Lakers pay

The Los Angeles Lakers have completely revamped the roster ahead of the 2026-27 season, headlining the offseason by signing center Walker Kessler to a four-year, $130 million deal.

Kessler, who spent the first four seasons of his career with the Utah Jazz, turned down a five-year, $140 million contract extension from the organization. Instead, the 24-year-old chose to join the Lakers on a more lucrative contract.

But is that really the case?

As a state, Utah has a flat individual state income tax rate of 4.45%, meaning there are no income brackets or top marginal rates. Because it’s a flat tax, all taxable income is taxed at the same rate regardless of the total amount and the state does not have any additional local income taxes.

By comparison, California’s notorious top state income tax rate reaches 13.3%; the highest in the nation. The actual rate is 12.3%, but the state also imposes a 1% surcharge for mental health services as well. Add in the 1.2% State Disability Insurance tax California requires everyone to pay, and Kessler is expected to lose 14.5% of his paycheck to California taxes.

Kessler accepted Los Angeles’ four-year, $130 million contract over the five-year, $140 million offered by the Jazz. While many within the league believe the Lakers massively overpaid a player who has yet to make an All-Star or All-NBA team — his only accolade is being named first-team all-rookie — it turns our Kessler’s actual take home will be less than what he would’ve received in Utah.

Kessler’s AAV (average annual value) in Los Angeles will be $32.5 million, which means he’ll lose $4.7 million in taxes in California, making his take home amount $27.8 million per season. Over the course of his four-year contract, Kessler is expected to lose $18.8 million and bring home $111.2 million.

If Kessler had stayed in Utah on that deal, his AAV would’ve been $28 million per season. He would’ve lost $1.3 million in taxes every season, making his take home amount $26.7 million. Over the course of his five-year contract, Kessler was expected to lose $6.5 million and bring home $133.5 million.

That means the price of playing alongside Luka Dončić is going to cost Kessler $22.3 million over the course of his contract.

This would directly conflict with reports that Kessler rejected the Jazz’s offer because he wanted more money. There were, however, other reports that the center was frustrated with Utah and the handling of his contract.

The strained relationship likely opened the door for the Lakers to trade for Kessler and ultimately sign him to the four-year deal. This summer marks a new era for the purple and gold.

Earlier this week, LeBron James informed the Lakers he would not return for the 2026–27 season, officially ending his tenure with the team after eight seasons.

Now, the Lakers are embarking on the next stage of the organization with Dončić, Austin Reaves and Kessler at the forefront.

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