Walker Kessler Joins Lakers After Leaving Jazz
The Los Angeles Lakers have made significant changes to their roster for the 2026-27 season, including a substantial four-year, $130 million deal for center Walker Kessler right at the start of the offseason.
Kessler, who played his first four seasons with the Utah Jazz, notably turned down a five-year, $140 million extension from the Jazz, instead opting for a potentially more rewarding contract with the Lakers.
But is there more to this story?
Utah’s flat personal income tax rate sits at 4.45%, meaning all taxable income is charged the same rate without any brackets or additional local taxes. In contrast, California’s top income tax rate is 13.3%, the highest in the nation. While the standard rate is 12.3%, an additional 1% surcharge for mental health services applies. Kessler also faces a 1.2% state disability insurance tax in California, which means he is expected to lose around 14.5% of his salary to state taxes.
Despite the Lakers’ offer being lower in total value compared to the Jazz’s, many in the league speculate that Kessler’s new deal may not yield a higher net income due to these hefty California taxes.
With an average annual value (AAV) of $32.5 million in Los Angeles, Kessler would lose about $4.7 million in taxes annually, leaving him with a take-home pay of around $27.8 million each season. Over his four-year contract, that amounts to a total of $111.2 million after taxes. Conversely, his AAV in Utah would have been $28 million per year, costing him about $1.3 million in taxes, leading to a take-home pay of $26.7 million each season and a total of $133.5 million over five years.
This means Kessler will effectively lose $22.3 million over the life of his contract to play alongside Luka Doncic.
Interestingly, this situation contradicts reports suggesting Kessler rejected the Jazz’s offer simply for more money. There were hints that he might have been unhappy in Utah and with how his contract was handled. This strained relationship appears to have paved the way for his transition to the Lakers.
Earlier this week, LeBron James announced he won’t be returning for the upcoming season, marking the end of his eight-year tenure with the Lakers. With Kessler, Doncic, and Austin Reaves now leading the team’s new direction, the Lakers are entering what could be a promising new chapter.
