Mississippi
Mississippi House of Representatives passes bill to make NIL earnings non-taxable
NIL money comes with a price. More specifically, a tax bill.
The Mississippi legislature is trying to reduce that burden for college athletes who play there.
Via Bea Anhuci of the Mississippi Clarion Ledger, the Mississippi House of Representatives has passed a bill that would exempt NIL earnings from state income tax.
It’s a recruiting tool for Ole Miss and Mississippi State, one that would put the Mississippi schools on equal footing with other states that host SEC universities. Florida, Tennessee, and Texas have no state income tax, and Arkansas carved out NIL earnings from the state’s income tax burden in 2025.
Mississippi currently charges a four-percent tax on anyone making more than $10,000 per year.
NIL earnings remain subject to federal income tax.
The bill will have to also pass the Mississippi Senate, and the governor would then be required to sign it into law.