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.
NIL agents are not capped like pro agents. 10% to 20% is common.
Real costs of earning the money (travel, gear for content, CPA). These lower your taxes.
15.3% on 92.35% of your profit: Social Security and Medicare, both halves, because nobody is your employer.
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.
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.
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.
SourceRevenue sharing cap was about $20.5M per school in 2025-26 and about $21.3M in 2026-27.
Set at 22% of average power-conference athletics revenue, growing roughly 4% a year. Schools may spend less. Reporting (WRAL, Dec 2025) says spending on players has grown past the cap through loopholes.
SourceThird-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.
SourceNIL 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.
SourceAbout 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).
SourceTexas 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
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.