How much tax do athletes pay on NIL money in Michigan?

On $25,000 of NIL income in 2026, a single athlete in Michigan with no other income owes about $4,840 in total and keeps $20,160. On $100,000 the total is about $26,064. That covers self-employment, federal income and Michigan state tax.

Does Michigan tax NIL income?

Yes. Michigan taxes NIL income at a flat 4.25%, the same way it taxes other self-employment income. No Michigan law exempts NIL pay.

Do I have to pay estimated taxes on NIL income in Michigan?

Usually. Federal estimates are due once you expect to owe $1,000 or more for the year (unless you owed nothing the year before). For Michigan's own tax, estimates are required when you expect to owe more than $500. Due April 15, June 15, September 15 and January 15.

Is NIL income taxed like a paycheck?

No. NIL is usually paid on a 1099 with nothing withheld, so you pay both halves of Social Security and Medicare as self-employment tax (15.3%) and are responsible for paying your income tax during the year.

— NIL taxes · Michigan · 2026

Michigan NIL tax calculator

Michigan taxes NIL income at a flat 4.25%, 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 Michigan Department of Treasury

How Michigan taxes NIL income

Michigan taxes NIL income at a flat 4.25% for 2026, after a $5,900 personal exemption ($11,800 filing jointly). The revenue trigger that cut the rate for 2023 didn't fire for 2026. On $25,000 of NIL income a single athlete in Michigan owes about $737 in state tax and keeps about $20,160, or 80.6%.

Michigan starts from federal adjusted gross income, which is your NIL income minus the deductible half of self-employment tax.

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.

What athletes keep in Michigan: three examples

At $5,000, $25,000 and $100,000 of NIL income, a single athlete in Michigan keeps 85.9%, 80.6% and 73.9%. Self-employment tax is the biggest bill at the low end; income tax grows with earnings.

Michigan, 2026, single filer, NIL as the only income
NIL income	Self-employment tax	Federal income tax	Michigan tax	Take-home	You keep
$5,000	$706	$0	$0	$4,294	85.9%
$25,000	$3,532	$571	$737	$20,160	80.6%
$100,000	$14,130	$8,235	$3,699	$73,936	73.9%

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.

Michigan rules that change the bill

If a parent can claim you as a dependent, you get a $1,500 deduction instead of the $5,900 exemption.

Two dozen Michigan cities tax income too. Detroit taxes residents at 2.4% and East Lansing at 1% (0.5% for nonresidents working there); Ann Arbor has no city income tax. This calculator doesn't add local taxes.
No Michigan bill gives NIL pay any special tax treatment.

Quarterly estimated tax in Michigan

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 Michigan's own tax, estimates are required when you expect to owe more than $500. Due April 15, June 15, September 15 and 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.

Michigan NIL rules

Taxes are one half of a deal; the other is whether the deal is allowed. Michigan's NIL rules cover the state law, what high-school athletes can do, and whether collectives can operate there.

Frequently asked questions

How much tax do athletes pay on NIL money in Michigan?: On $25,000 of NIL income in 2026, a single athlete in Michigan with no other income owes about $4,840 in total and keeps $20,160. On $100,000 the total is about $26,064. That covers self-employment, federal income and Michigan state tax.
Does Michigan tax NIL income?: Yes. Michigan taxes NIL income at a flat 4.25%, the same way it taxes other self-employment income. No Michigan law exempts NIL pay.
Do I have to pay estimated taxes on NIL income in Michigan?: Usually. Federal estimates are due once you expect to owe $1,000 or more for the year (unless you owed nothing the year before). For Michigan's own tax, estimates are required when you expect to owe more than $500. Due April 15, June 15, September 15 and January 15.
Is NIL income taxed like a paycheck?: No. NIL is usually paid on a 1099 with nothing withheld, so you pay both halves of Social Security and Medicare as self-employment tax (15.3%) and are responsible for paying your income tax during the year.

Sources

4.25% Income Tax Rate for Individuals and Fiduciaries in 2026 Tax Year — Michigan Department of Treasury
446 (Rev. 02-26), 2026 Michigan Income Tax Withholding Guide ($5,900 exemption) — Michigan Department of Treasury
Which cities impose an income tax? — Michigan Department of Treasury
City of East Lansing: income tax — City of East Lansing
Rev. Proc. 2025-32: 2026 tax brackets, standard deduction and QBI thresholds — IRS
Form 1040-ES (2026): Social Security wage base and estimated tax dates — IRS
Self-Employment Tax (Social Security and Medicare Taxes) — IRS