— NIL taxes · North Carolina · 2026
North Carolina taxes NIL income at a flat 3.99%, 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 North Carolina Department of Revenue
North Carolina taxes NIL income at a flat 3.99% for 2026 after a $12,750 standard deduction ($25,500 filing jointly). The rate is set to fall to 3.49% from 2027. On $25,000 of NIL income a single athlete in North Carolina owes about $418 in state tax and keeps about $20,479, or 81.9%.
North Carolina starts from federal adjusted gross income, which is your NIL income minus the deductible half of self-employment tax, then subtracts its $12,750 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 North Carolina keeps 85.9%, 81.9% and 74.4%. Self-employment tax is the biggest bill at the low end; income tax grows with earnings.
| NIL income | Self-employment tax | Federal income tax | North Carolina tax | Take-home | You keep |
|---|---|---|---|---|---|
| $5,000 | $706 | $0 | $0 | $4,294 | 85.9% |
| $25,000 | $3,532 | $571 | $418 | $20,479 | 81.9% |
| $100,000 | $14,130 | $8,235 | $3,199 | $74,436 | 74.4% |
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.
North Carolina taxes nonresidents on income from appearances in the state, and a payer must withhold 4% from a nonresident paid more than $1,500 for an athletic, performing or speaking appearance.
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 North Carolina's own tax, estimates are required when you expect to owe $1,000 or more. 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.
Taxes are one half of a deal; the other is whether the deal is allowed. North Carolina's NIL rules cover the state law, what high-school athletes can do, and whether collectives can operate there.