League rules · IPL
IPL contract rules: what comes off the salary before tax
IPL caps agent commission at 7%. On a $10M contract that is $700,000, leaving $9,300,000 to be taxed. 10 clubs are modelled on this site.
The rules in force for 2026-27
Overseas players are capped at INR 18 crore at auction; anything above that goes to the BCCI player welfare fund. Overseas players pay 20% TDS under Section 115BBA, Indian residents pay up to 39% all-in.
What the deductions cost at each contract size
| Contract | Agent fee (7%) | Escrow | Left to tax | Total held back |
|---|---|---|---|---|
| $1,000,000 | $70,000 | — | $930,000 | 7% |
| $5,000,000 | $350,000 | — | $4,650,000 | 7% |
| $10,000,000 | $700,000 | — | $9,300,000 | 7% |
| $25,000,000 | $1,750,000 | — | $23,250,000 | 7% |
These are the league-level deductions only. Income tax, social contributions and jock tax come off what remains — the IPL league page shows the after-tax result for every club.
Why the agent cap matters more than it looks
Agent commission is charged on gross salary, before tax, and it is not deductible. At 7% IPL sits at the top of the range we track, so a $25M contract pays $1,750,000 in commission alone.
Compare against the other 14 leagues
Agent commission ranges from 3% in the NFL to 7% in the IPL. See every league side by side →
Where the club plays decides the tax bill: IPL take-home rankings for all 10 clubs →