PA Supreme Court Strikes Down Pittsburgh ‘Jock Tax’

The Pennsylvania Supreme Court has invalidated Pittsburgh’s so-called “jock tax,” a 3% levy on income earned by visiting professional athletes and performers at publicly funded stadiums. The unanimous ruling found the tax discriminatory, marking a major shift in how cities can approach taxing nonresident workers.

What Happened

• Pittsburgh imposed a 3% income tax on nonresident athletes and entertainers performing at stadiums funded by public money.

• In contrast, city residents performing at the same venues paid only 1%, matching the city’s general earned income tax rate.

• The state’s highest court unanimously ruled this unequal treatment discriminatory against nonresidents, violating constitutional protections.

• The decision strikes down the tax, potentially costing the city millions in annual revenue.

Why It Matters

1. For Municipalities: Cities often rely on taxing visiting professionals to boost revenue, especially where public funds support stadiums. This ruling limits that strategy.

2. For Athletes & Entertainers: Nonresident performers will no longer face a higher Pittsburgh tax burden than local peers, creating more parity.

3. For Precedent: Other jurisdictions with similar “visitor taxes” could see challenges, reshaping the broader landscape of local taxation.

4. For Tax Professionals: Clients working across jurisdictions—particularly athletes, entertainers, or touring professionals—must now monitor where legal challenges could change withholding requirements.

Implications for CPAs and Advisors

• Athletes & Agents: Adjust withholding estimates and contract negotiations for players and performers no longer subject to the Pittsburgh tax.

• Entertainers & Touring Businesses: Reassess multistate/local tax exposure—this case may fuel challenges in other cities with comparable levies.

• Municipal Clients: Cities may need to rethink revenue structures in light of constitutional scrutiny over discriminatory nonresident taxes.

Looking Ahead

The ruling erodes a tool many cities use to balance budgets and highlights growing judicial skepticism over discriminatory tax schemes. For CPAs and tax advisors, this underscores the importance of staying ahead of local tax litigation that can quickly change the rules for clients on the move.

Stay Ahead of State & Local Tax Developments

From “jock taxes” to sales tax shifts, local rules can change overnight.

Try Bizora today to track evolving tax cases and guide your clients through multi-jurisdiction compliance.