NFL agent cap 3%NBA agent cap 4%MLB agent fee (no union cap) usually 4 to 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
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NIL calculator

NIL money is not a paycheck

Nobody takes taxes out of an NIL deal. The bill shows up in April. See what to save, what the agent takes, and what is really yours.

Deals total

$50,000

Set aside for taxes

$7,806

Really yours

$31,694

Statement of earnings

$50K in NIL deals

Paid on a 1099. Nobody withholds tax for you.

No withholding
Gross pay$50,000
FeeAgent / collective fee (15%)($7,500)

NIL agents are not capped like pro agents. 10% to 20% is common.

FeeBusiness expenses($3,000)

Real costs of earning the money (travel, gear for content, CPA). These lower your taxes.

TaxSelf-employment tax($5,581)

15.3% on 92.35% of your profit: Social Security and Medicare, both halves, because nobody is your employer.

TaxFederal income tax($2,225)

After the $16,100 standard deduction and half of your self-employment tax.

What you actually keep

$31,694

You keep

63%

The rule of thumb

Save 20%

Of every NIL payment, after the agent takes their cut. For you that is about $651 a month. Move it to a separate savings account the day the money lands, and do not touch it.

Pay the IRS 4 times a year

$1,952

Each quarter, if your income stays steady. For 2026 income the dates are April 15, June 15, and September 15 of 2026, and January 15, 2027. Your state may want payments too.

Know this

  • If your parents still claim you, you file your own return for NIL money, and they keep claiming you. It does not move onto their return.
  • College athletes: third-party NIL deals of $600 or more must be reported to NIL Go, the College Sports Commission's clearinghouse, within 5 business days.
  • School revenue-share payments may be reported differently from third-party deals. Ask your school's compliance office how yours are reported.
  • Income is taxable even if you never get a 1099 form. For 2026 payments, companies only have to send one if they paid you $2,000 or more.

Estimate for education, using 2026 federal self-employment rules and your state's rates. Does not include the qualified business income deduction some athletes may qualify for, or local taxes. Not tax advice.

Watch · 84 seconds

Nobody takes taxes out of NIL money.

A $50,000 NIL year in Georgia, line by line: the agent, business costs, self-employment tax, federal and state tax. What the athlete keeps, and the $766 a month to set aside so April is not a surprise. Watch it with your parents.

What changed in college sports

The new NIL world, in plain English

Schools can now pay athletes directly, deals get checked by a clearinghouse, and NIL agents are still mostly unregulated. Here is what is true as of 2026, with the source for each.

Getting paid by your school? Read the contract guide
A college athlete and her parents going over an NIL deal at the kitchen table

  • House v. NCAA settlement lets schools pay athletes directly, starting July 1 2025.

    Judge Claudia Wilken granted final approval June 6 2025. About $2.8B in back damages over 10 years plus forward revenue sharing.

    Source

  • Revenue sharing cap was about $20.5M per school in 2025-26 and $21.58M in 2026-27.

    Set at 22% of average power-conference athletics revenue, growing roughly 4% a year; the 2026-27 figure includes an audit adjustment of about $131,000 per school. Schools may spend less. Reporting (WRAL, Dec 2025) says spending on players has grown past the cap through loopholes.

    Source

  • Third-party NIL deals worth $600 or more must be reported to NIL Go, run by the College Sports Commission with Deloitte.

    Report within 5 business days. Deals are cleared, not cleared, or sent back for more info; athletes can revise, cancel, or go to neutral arbitration. Deloitte said a large share of past collective deals would not have cleared.

    Source

  • NIL agent commissions are unregulated and commonly 10% to 20%, with some reported at 20% to 30%.

    Pro unions cap agents at 3% (NFL) to 4% (NBA) on playing contracts. The 2026 bipartisan Protect College Sports Act would cap certain athlete-agent fees at 5% (proposal, not law). A widely repeated 'median 20%' survey figure could not be traced to a named study.

    Source

  • About 42 states (plus DC) allow high school athletes some form of NIL; roughly 6 ban it.

    Opendorse lists outright bans in Alabama, Hawaii, Indiana, Mississippi, Wyoming, and Montana (under review). Counts vary by tracker (SI June 2025 said 39 + DC). Ohio's OHSAA approved NIL in Nov 2025. California, Florida, Georgia, New York, New Jersey, Pennsylvania, Virginia, North Carolina all allow it with restrictions (no school logos, banned categories).

    Source

  • Texas still does NOT let high schoolers get paid for NIL. HB 126 (June 2025) lets athletes 17+ SIGN NIL deals with colleges, but no money until enrolled in college.

    Signed by Gov. Abbott June 5 2025, effective immediately. Sen. Brandon Creighton said no athlete in high school can receive money under an NIL agreement until enrolled in college. UIL 2025-26 policy: 17+ prospects may sign only with postsecondary institutions per state law and NCAA rules. Under-17 deals barred.

    Source

Doing it right

He bought a food truck, not a chain.

Colorado receiver DeAndre Moore Jr. used his NIL money to start Jive Turkey, a food truck in Austin with a turkey menu: burgers, fried tacos, and a cornbread bowl. His twin sister Denae runs the money side, his mom helps with the menu, and the plan is to move the truck to Boulder and one day open a restaurant. The family is also starting a small car rental business.

“I'd much rather spend on something that can give me a return.”

DeAndre Moore Jr., to The Associated Press

More athletes who built something

What to copy

  • Own something that pays you backJewelry and clothes lose value the day you buy them. A business, rental property, or index fund can pay you for years.
  • Let someone you trust keep the booksA family member tracking every dollar is a check on everyone, including you. Keep business money in its own account.
  • Set the tax money aside firstBusiness profit is taxed too, and NIL money has no taxes taken out. Save 25% to 35% before you invest the rest.
  • Set it up the right wayOnce a business makes real money, an LLC can separate it from your personal money. Read our LLC guide before you pay anyone.
The LLC guidePlay it like the rich

NIL taxes by state

Where you live changes what you keep

Pick your state for the real numbers, what to set aside, and how it ranks against every other state.

Free download

The Rookie Money Checklist

25 moves for the first contract, the first NIL deal, and the family around it. Four pages. Print it, put it on the fridge.

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NIL questions families ask

Do I have to pay taxes on NIL money?+

Yes. Money from NIL deals is income, and for most third-party deals you are treated as self-employed. That means federal income tax, state income tax in most states, and 15.3% self-employment tax (Social Security and Medicare) on most of your profit. Nobody takes it out for you, so you have to set it aside.

How much of my NIL money should I save for taxes?+

A safe starting point is 25% to 35% of what is left after your agent's cut, depending on your state and how much you make. Use the calculator above for your number, then check it with a CPA once your deals add up to real money.

Can high school athletes get paid for NIL?+

In most states, yes, with rules: usually no school logos or uniforms, no deals in banned categories like alcohol, gambling, or adult products, and a parent or guardian signs for minors. A handful of states still ban it. Texas lets athletes 17 and older sign NIL deals with colleges, but no money can be paid until they enroll in college.

What happens if I do not pay quarterly estimated taxes?+

You still owe the tax when you file, plus an underpayment penalty and interest. The bigger problem is cash: if you spent the money, you now owe the IRS money you do not have. Quarterly payments keep that from happening.

Should I form an LLC for my NIL deals?+

Sometimes, once the money is steady and real. An LLC can separate your business money from your personal money and limit liability. It does not lower taxes by itself. Read our LLC guide before you pay anyone to set one up.

Next: read the full NIL money guide for families.