Victoria StewartThe Toronto Raptors signed Canadian guard Jalen Celestine on Friday, October 16, 2026, the team announced, according to The Canadian Press. Terms of the deal were not disclosed. RotoWire, citing The Athletic's Esfandiar Baraheni, reports it is an Exhibit 10 contract, the kind that often leads to a waiver and a spot with the G League affiliate. For a 6'7" player from Ajax, Ontario, it is a homecoming. It also raises a question that many young earners never plan for: how is short-term, cross-border sports income actually taxed and managed?
What we know about the signing
Celestine, listed at 220 pounds, played at California from 2020 to 2024, then at Baylor in 2024-25, and finished at Cincinnati. According to TSN, he appeared in 32 games last season, starting 14, and averaged 8.6 points and 3.1 rebounds in 23.8 minutes. He shot .405 from three-point range.
He also played two games for Toronto at the 2026 NBA Summer League in Las Vegas. Off the bench in a consolation game, he scored 9 points on 3-of-5 three-point shooting in a 96-89 loss to Denver, per the same report.
The contract details matter for what follows. Exhibit 10 deals are typically short and can carry a bonus if the player joins the team's G League affiliate after being waived. The exact figures for Celestine have not been published, so nothing below assumes them.
Why a modest contract can still create a complicated tax picture
Many readers assume tax complexity only arrives with a max contract. In practice, the paperwork is what grows first. A Canadian resident is generally taxed in Canada on worldwide income. When part of that income is earned in the United States, the U.S. may also tax it, because professional athletes are usually taxed on income earned by playing games there.
The Canada Revenue Agency lets residents claim a federal foreign tax credit to reduce double taxation on foreign income. The CRA explains the rules on its federal foreign tax credit page. The credit has limits, though, and it works differently depending on whether the income is from a U.S. or Canadian source and where the player's tax home sits.
That is where a cross-border accountant or wealth manager earns the fee. Whether income is Canadian-source or U.S.-source, where the player is resident, and how a G League stint is treated can all change the final bill.
The questions a young player's adviser should ask first
Professionals who work with athletes tend to start with the same short list:
- Residency: Where does the player keep a home, family and ties? That determines which country treats them as a resident.
- Game-day allocation: Pay is often allocated by where games are played, so the split between home and road dates matters.
- Withholding: Payments may have tax withheld at source in the U.S., which then has to be reconciled in Canada.
- Timing: A bonus paid after a waiver and a move to the G League may land in a different tax year than the base pay.
- Agent and adviser fees: These are typically a percentage of earnings and affect net income.
None of these is exotic. The risk is that a player focused on making a roster treats them as problems for later.
A worked example: how a short deal can shrink on paper
Consider a purely hypothetical player, not Celestine, who earns C$100,000 in a season split between a short NBA deal and a G League assignment. These numbers are illustrative only.
Suppose C$60,000 of that is treated as U.S.-source income because the games were played in American arenas, and C$40,000 is Canadian-source income. If the U.S. withholds C$12,000 on the American portion, the player has already lost 12 percent of their total pay before filing anything in Canada.
Now the if/then logic applies. If the player files correctly in Canada and claims the foreign tax credit, then the C$12,000 can offset Canadian tax owed on the same income, up to the credit's limit. If the player never files or misses the credit, then the same C$12,000 stays lost and Canadian tax is owed on top of it.
Add a 10 percent agent fee, which is C$10,000 on the full C$100,000, and the gap between a well-planned and a careless year can reach five figures. On a modest salary, that is a meaningful share of the take-home pay.
This is also why a short contract is not a reason to skip professional help. The earlier an adviser is involved, the more of these choices are still open.
Why the first contract is the riskiest moment for money habits
A player who has spent four or five years in college basketball has usually earned little formal income. Moving from that to a paycheque, even a modest one, changes the picture quickly. Advisers who work with young professionals often point to the same pattern: spending rises to meet the first contract, while savings and tax reserves lag behind.
A simple structure helps. Set aside a fixed share of every payment for taxes before anything else. Keep a reserve that covers several months of living costs, because short deals can end without warning, and a waiver is a normal part of the Exhibit 10 process. Only then decide what to invest. Registered accounts such as the TFSA and RRSP are the usual starting point for Canadians, and a wealth manager can explain how each interacts with foreign income.
Insurance deserves a mention too. Athletes depend on their bodies for income, so disability coverage and contract protections are part of any serious plan. The terms vary widely, which is another reason to get advice before signing anything beyond the team contract itself.
Mistakes advisers say they see most often
Four errors come up again and again with cross-border earners. The first is ignoring a U.S. withholding slip because the amount seems small. The second is assuming the employer handles Canadian filing, when it does not. The third is mixing personal and business expenses without records. The fourth is waiting until April to ask any questions, by which time several options have closed.
Each of these is cheap to avoid and expensive to fix. A single early meeting can usually prevent all four.
What this means beyond the NBA
Celestine's story is a high-profile version of a common situation. Canadians who work on short contracts in the U.S., from freelancers to seasonal workers and touring performers, face the same two-country filing question. The principle is the same at any income level: income earned in more than one country needs a plan before the first cheque arrives.
Families of young athletes face a related decision. A first contract often arrives before the person has any experience managing a large, irregular income. Setting up a budget, an emergency reserve and a registered savings plan early can matter more than the headline number.
What to do if your income crosses the border
If you earn money from U.S. sources while living in Canada, gather your pay records and any withholding statements as they arrive. Keep track of days worked in each country. Then book a consultation with a cross-border tax professional or wealth manager before filing, not after.
Expert Zoom connects Canadians with wealth management specialists who can review multi-country income and build a plan around it. Browse the Wealth Management category to find an expert who fits your situation.
This article is general information, not tax or financial advice. Rules vary with individual circumstances, so confirm your situation with a qualified professional.
