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
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Playing overseas

China. Europe. Japan. What do you really keep?

Overseas money has its own rules: net contracts, a US return you still have to file, and a home state that may still want its cut. Here is the real math.

Contract

$1,500,000

US return counts

$2,500,000

Really yours

$1,350,000

Statement of earnings

$1.5M season in China

Net contract: the club pays your foreign tax. US home: TX.

Net deal
Gross pay$1,500,000
FeeAgent (10%)($150,000)

What you actually keep

$1,350,000

You keep

90%

What most players miss

  • A net contract is bigger than it looks on your US return. The $1,000,000 of tax the club pays for you counts as income, so the IRS sees $2,500,000. You then get credit for that foreign tax.
  • US citizens file a US return every year, wherever they play. The foreign tax credit usually cancels most of the US tax in high-tax countries.
  • The $132,900 exclusion is harder to get than people think. You need 330 full days outside the US in 12 months (or a full year living abroad). A season abroad plus a summer at home usually fails.
  • No US Social Security from a foreign club. Pay from a foreign employer usually is not hit by US payroll tax, but you are also not earning Social Security credits for it.
  • Foreign bank accounts must be reported. If your foreign accounts add up to more than $10,000 at any time, you file an FBAR. Penalties for missing it are steep.
  • Get paid on time. Late or unpaid salary is a real risk at some clubs. Ask for a payment schedule and a FIBA Basketball Arbitral Tribunal (BAT) clause in the contract.

Foreign tax rates here are our estimates for typical import pay and change with your salary, residency, and each country's rules. US figures use 2026 rules. Education only, not tax advice. International returns need a CPA who handles expat athletes.

Young basketball player walking through an airport with his suitcase

Before you get on the plane

Five things to settle first

  1. 01Get the contract in writing as net or gross, with a payment schedule and a BAT arbitration clause.
  2. 02Decide which US state is home, and make it real. A no-tax state can save you a lot.
  3. 03Find a CPA who files expat athlete returns before the season, not after.
  4. 04Keep a record of every day you spend in and out of the US.
  5. 05Report foreign bank accounts over $10,000 (FBAR) every year.

Overseas questions

Do I pay US taxes if I play basketball overseas?+

You file a US return every year, because the US taxes citizens on income from anywhere. In most high-tax countries the foreign tax credit cancels most or all of the US tax, but you still have to file, and your home state may still tax you.

What is a net contract overseas?+

A contract where the club pays your local income tax, so the number in the contract is what you receive. Most deals in Europe, China, Japan, and Korea are written this way. For US taxes, the tax the club pays for you counts as extra income, and you get a credit for it.

Can I use the foreign earned income exclusion as an overseas athlete?+

Only if you pass the physical presence test (330 full days outside the US in a 12-month period) or are a bona fide resident abroad for a full tax year. The 2026 limit is $132,900. A season abroad plus summers in the US usually does not qualify, so most players use the foreign tax credit instead.

Is Puerto Rico overseas for taxes?+

No. Puerto Rico is a US territory, so the foreign earned income exclusion does not apply. Puerto Rico taxes the pay, and US Social Security and Medicare generally apply.