Breaking Down The Top 25 College Football Stars' 2026 NIL Tax Bills

MoneyTaxesBreaking Down The Top 25 College Football Stars' 2026 NIL Tax BillsByNathan Goldman,Contributor.Forbes contributors publish independent expert analyses and insights. Nathan Goldman is a tax prof. at NC State Univ.Follow AuthorAug 24, 2026, 07:00am EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.SummaryCollege football's top NIL earners, like Miami's Darian Mensah, face substantial tax liabilities, significantly reducing their take-home pay. Treated as independent contractors, athletes owe federal, state, and local income taxes, plus a 15.3% self-employment tax. This creates a "tax wedge," where state income tax rates, varying from 0% to 13.3%, cause vast differences in net earnings. For instance, California athletes pay nearly half their NIL in taxes, while those in tax-free states pay significantly less. This disparity is now a recruiting factor, prompting states like Arkansas to exempt NIL income from state taxes, with others attempting similar legislation. The calendar year for tax purposes also adds complexity, underscoring how geography and tax policy profoundly impact athletes' financial outcomes.Show More Miami quarterback Darian MensahIcon Sportswire via Getty ImagesLast year, Texas Quarterback Arch Manning topped On3’s estimated NIL valuation list at $6.8 million, yielding $2.47 million alone in federal income tax liability. This year, college football has a new NIL king in Miami Hurricanes signal caller, Darian Mensah, a transfer from Duke University. While NIL earnings continue to surge, student-athletes are taking home far less than this amount due to income tax liabilities. In fact, a student athlete like Oregon’s Dante Moore makes the same as Washington’s Demond Williams Jr. on an after-tax basis even though his NIL valuation is much higher. The reason: a large difference in state income taxes owed.ForbesBreaking Down The Top 20 College Foo...