How can you maximize your NIL dollars? Well for starters, what state is the school in?
A lot of athletes don’t realize this but your take‑home NIL money can look very different depending on the state you play in.
States with no income tax let your NIL money go further. Texas, Florida, and Tennessee already give athletes a built‑in financial advantage because they have 0% state income tax. Your money is going to go a lot further in those states. Playing in a no‑tax state versus a high‑tax state (like California at 13.3%) can mean keeping tens or even hundreds of thousands more each year.
Some states are now passing NIL‑specific tax breaks – Arkansas became the first state to exempt NIL income from state tax in 2025. States like Georgia, North Carolina, Illinois, New Jersey, and South Carolina have proposed legislation that would allow athletes to deduct their NIL earnings from their adjusted gross incomes rather than exempting their earnings from the income tax. States want to give their universities an advantage in the NIL arms race!
Two athletes can sign the same NIL deal, but walk away with very different amounts depending on where they play. Where you play affects: your state tax bill, your take‑home NIL income, how far your money goes. And what you can build during your college career. So before you make a decision, and NIL is at play, ask yourself, what state is that school in again?