NCAA · Texas
College athletes in Texas: what NIL money really pays
On a $500,000 NIL deal in Texas, the athlete takes home about $255,366 — that is 51.1% of the headline number, after the 15.3% self-employment tax, federal income tax, agent fees and the state bill.
Take-home pay at three contract sizes
| Contract | Income tax | FICA / SE | Agent + escrow | Net | Kept |
|---|---|---|---|---|---|
| $100,000 | −$13,170 | −$16,300 | −$5,000 | $65,530 | 65.5% |
| $500,000 | −$138,134 | −$81,500 | −$25,000 | $255,366 | 51.1% |
| $1,000,000 | −$320,000 | −$163,000 | −$50,000 | $467,000 | 46.7% |
Where a $500,000 deal goes
| Deduction | Amount |
|---|---|
| Federal income tax | −$138,134 |
| Self-employment tax (15.3%) | −$76,500 |
| Agent commission (5%) | −$25,000 |
| Jock tax (duty-day estimate) | −$5,000 |
| Total deductions | −$244,634 |
| Take-home pay | $255,366 |
Why Texas keeps 51.1%
Texas levies no state income tax at all, which is why Dallas, Houston and San Antonio consistently top take-home rankings. The trade-off is higher property and sales taxes.
NIL money is self-employment income, so it carries the 15.3% self-employment tax plus income tax. There is no escrow and no union agent cap.
Same money, different tax market
| Team | Market | Top rate | Net |
|---|---|---|---|
| Texas | Texas | 0% | $255,366 |
| Florida | Florida | 0% | $255,366 |
| California | California | 13.3% | $188,866 |
| Utah | Utah | 4.5% | $232,866 |
Questions
How much does a Texas player take home on a $500,000 contract?
About $255,366, or 51.1% of the headline figure. Income tax takes $138,134, agent commission takes $25,000 and FICA, self-employment tax and jock tax take the remaining $81,500.
Does Texas tax Texas players?
No. Texas levies no income tax on wages, so a Texas player's state or provincial deduction is zero. Only federal tax and the league deductions apply.