Canadiens' Alex Newhook gets 100% honest about NHL’s state income tax debate

NHL team Montreal Canadiens forward Alex Newhook has experience playing in both the United States and Canada, giving him a clear view of the differences. He spoke about the growing debate over state income taxes in the NHL and how it affects players' decisions.

The NHL’s new CBA introduced some key changes, which include signing bonus limits. Additionally, free-agent contract terms are now shorter, and teams can no longer defer salaries.

Newhook admitted that taxes do play a role when players consider where to sign. However, he believes their importance is often overstated.

“I think around the league it’s definitely a factor,” he said. “But the narrative of not playing in Canada because of the taxes gets overvalued.”

Now with the Montreal Canadiens, Newhook explained why playing in a Canadian market still matters. He shared how the atmosphere in cities like Montreal makes a big difference.

“How would you pass up on being in a market like Montreal,” he said, “where it’s a Tuesday or Monday night but it feels like a Saturday in everyone else’s building.”

His comments come at a time when the NHL’s new collective bargaining agreement has added more challenges for Canadian teams. Under the updated rules, only 60% of a contract can be paid through signing bonuses. This is a big shift from the past, when players could receive most of their salary, as signing bonuses taxed at lower rates (only 15% for U.S.-based players).

Newhook, who is from St. John's, Newfoundland, Canada, scored 15 goals and added 11 assists for a total of 26 points in the 2024-25 season. He played just over 15 minutes per game and ended the regular season with a minus-21 rating. He also scored three game-winning goals and one power-play goal.

In the playoffs, he appeared in five games, scoring one goal and one assist. His average ice time in the postseason was 15 minutes and 31 seconds. Known for his speed and skill, Newhook plays a middle-six role and continues to develop his game.

Legal analyst warns of growing tax gap for Canadian NHL teams

On July 28, legal analyst Eric Macramalla wrote about this change in his Forbes column. He explained that the new system puts Canadian teams at a disadvantage. He pointed out that seven Canadian teams are now among the eleven most heavily taxed in the league.

"With all seven Canadian teams in the top eleven in the NHL, things just got a bit more complicated for Canadian teams. And now, A relief valve for Canadian teams has been partially closed," Macramalla said.

Along with high taxes, Canadian teams also face weather and media challenges. Now, teams in states like Florida and Texas may become more appealing, simply because players keep more of their earnings.