— NIL taxes · California · 2026
California taxes NIL income at 1% to 12.3%, on top of federal income tax and self-employment tax, and nothing is withheld from a 1099. Enter your earnings to see what you keep in 2026.
Figures last verified Oct 25, 2026 against the IRS and California Franchise Tax Board
California taxes NIL income on nine brackets from 1% to 12.3%, plus 1% more on taxable income over $1 million, and it doesn't allow the federal qualified business income deduction. On $25,000 of NIL income a single athlete in California owes about $74 in state tax and keeps about $20,823, or 83.3%.
California starts from federal adjusted gross income, which is your NIL income minus the deductible half of self-employment tax, then subtracts its $5,900 standard deduction for a single filer.
That state tax is on top of federal self-employment tax (15.3% on 92.35% of your net earnings, with the Social Security part capped at $184,500 in 2026) and federal income tax.
At $5,000, $25,000 and $100,000 of NIL income, a single athlete in California keeps 85.9%, 83.3% and 73.4%. Self-employment tax is the biggest bill at the low end; income tax grows with earnings.
| NIL income | Self-employment tax | Federal income tax | California tax | Take-home | You keep |
|---|---|---|---|---|---|
| $5,000 | $706 | $0 | $0 | $4,294 | 85.9% |
| $25,000 | $3,532 | $571 | $74 | $20,823 | 83.3% |
| $100,000 | $14,130 | $8,235 | $4,254 | $73,382 | 73.4% |
These assume no other income, no business expenses and the 2026 federal standard deduction. Business expenses (travel to a shoot, an agent's fee, equipment you need for the deal) lower every line. Run your own numbers above.
Your California tax starts from federal adjusted gross income, so the deductible half of self-employment tax lowers it. After the brackets, a personal exemption credit comes off the tax.
Nothing is withheld from NIL pay, so the IRS expects estimated payments once you'll owe $1,000 or more for the year: April 15, June 15 and September 15, 2026, and January 15, 2027. For California's own tax, estimates are required when you expect to owe $500 or more. California splits them 30% (April 15), 40% (June 15), nothing in September, and 30% (January 15).
A first-year athlete who owed no federal tax the year before doesn't have to make federal estimates. Setting aside a share of every payment as it arrives is the simplest way to cover the bill either way; the NIL taxes guide explains how.
Taxes are one half of a deal; the other is whether the deal is allowed. California's NIL rules cover the state law, what high-school athletes can do, and whether collectives can operate there.