NFL agent cap 3%NBA agent cap 4%MLB agent cap 5%Top federal rate 2026 37%Bonus withholding over $1M 37%Texas state tax on wages 0%Florida state tax on wages 0%California top rate 13.3%NBA escrow 10% of each check held backNIL money 1099 income, add 15.3% self-employment taxAgent fees for team salary not deductible on your federal returnNFL players file taxes in about 10 to 14 states a year
All answers

What is NBA escrow?

The short answer

NBA escrow is 10% of every player paycheck that the league holds back so total player pay matches the players' agreed share of league revenue. After the season, some or all of it is returned. For the 2025-26 season, reporting shows the escrow pool was split about 45% to players and 55% to owners, so players effectively lost about 5.5% of salary.

Numbers from the KeepMyCheck calculator using 2026 tax rules. Estimates, not tax advice.

Worked exampleEscrow on a $10 million NBA salary
Held back during the season (10%)$1,000,000
Returned if players got about 45% backabout $450,000
Effectively lostabout $550,000

The return changes every year with league revenue.

See an NBA contract with escrow

Related questions

Do NBA players get their escrow back?
Part of it, depending on league revenue. In 2025-26, players effectively got back about 45% of the pool.