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

On $25,000 of NIL income in 2026, a single athlete in Texas with no other income owes about $4,103 in total and keeps $20,897. On $100,000 the total is about $22,365. That covers self-employment, federal income and no state tax.

Does Texas tax NIL income?

No. Texas has no state income tax, so NIL income owes only federal income tax and self-employment tax, plus any tax another state charges on appearances made there.

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

Usually. Federal estimates are due once you expect to owe $1,000 or more for the year (unless you owed nothing the year before). Texas has no state income tax, so there are no state estimates to make.

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 · Texas · 2026

Texas NIL tax calculator

Texas has no state income tax on NIL money, 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 Texas Comptroller of Public Accounts

How Texas taxes NIL income

Texas has no personal income tax: its constitution bars a tax on individuals' net income, so NIL money owes only federal income tax and self-employment tax. On $25,000 of NIL income a single athlete in Texas keeps about $20,897, or 83.6%.

Federal tax still applies in full: self-employment tax of 15.3% on 92.35% of your net earnings (the Social Security part stops at $184,500 in 2026) and income tax on what's left after the $16,100 standard deduction, half of the self-employment tax and the qualified business income deduction.

What athletes keep in Texas: three examples

At $5,000, $25,000 and $100,000 of NIL income, a single athlete in Texas keeps 85.9%, 83.6% and 77.6%. Self-employment tax is the biggest bill at the low end; income tax grows with earnings.

Texas, 2026, single filer, NIL as the only income
NIL income	Self-employment tax	Federal income tax	Texas tax	Take-home	You keep
$5,000	$706	$0	$0	$4,294	85.9%
$25,000	$3,532	$571	$0	$20,897	83.6%
$100,000	$14,130	$8,235	$0	$77,635	77.6%

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.

Texas rules that change the bill

A sole proprietor owes no Texas franchise tax. An LLC is covered by it but owes nothing below $2.65 million of revenue in 2026 and 2027.

An appearance or event in a state that has an income tax can be taxed by that state as nonresident income, even if you live in Texas.

Quarterly estimated tax in Texas

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. Texas has no state income tax, so there are no state estimates to make.

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.

Texas NIL rules

Taxes are one half of a deal; the other is whether the deal is allowed. Texas'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 Texas?: On $25,000 of NIL income in 2026, a single athlete in Texas with no other income owes about $4,103 in total and keeps $20,897. On $100,000 the total is about $22,365. That covers self-employment, federal income and no state tax.
Does Texas tax NIL income?: No. Texas has no state income tax, so NIL income owes only federal income tax and self-employment tax, plus any tax another state charges on appearances made there.
Do I have to pay estimated taxes on NIL income in Texas?: Usually. Federal estimates are due once you expect to owe $1,000 or more for the year (unless you owed nothing the year before). Texas has no state income tax, so there are no state estimates to make.
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

Texas Constitution, art. 8, § 24-a (no tax on individuals' net income) — Texas Legislature
Franchise Tax overview (sole proprietors are not subject) — Texas Comptroller
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