The short answer
Yes. NIL money from deals is taxable income, and most athletes are treated as self-employed, so they owe federal income tax, state tax, and 15.3% self-employment tax, with nothing taken out ahead of time. On $50,000 of NIL deals in Georgia with a 15% agent, an athlete owes about $9,189 in taxes and keeps about $31,311.
Numbers from the KeepMyCheck calculator using 2026 tax rules. Estimates, not tax advice.
Because nobody withholds taxes from NIL payments, athletes should set money aside every time they get paid and make quarterly estimated payments to the IRS. For 2026 income the due dates are April 15, June 15, and September 15, 2026, and January 15, 2027.
Related questions
- How much should I save for NIL taxes?
- Start with 25% to 35% of each payment after the agent's cut. The exact number depends on your state and total income.
- Do high school athletes pay taxes on NIL?
- Yes, the same rules apply at any age. Parents usually help file.
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