Mississippi Considers Tax Exemption for College Athletes' NIL Income

The proposal aims to make the state more attractive for top athletic talent.

Published on Mar. 8, 2026

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Mississippi is considering a proposal to exempt the name, image, and likeness (NIL) income of college athletes from state taxes, as early as 2027. The move is intended to make the state more appealing for top athletic recruits, as other states like Florida, Texas, and Tennessee are also considering similar NIL tax exemptions. The growing commercialization of college sports through the NIL era is raising concerns that the student-athlete experience is starting to resemble that of professional sports.

Why it matters

The NIL era has fundamentally transformed college sports, allowing athletes to profit off their name, image, and likeness. However, this has also led to increased professionalization of college athletics, with the rise of athlete representation and the high costs for schools to field competitive teams. Mississippi's proposed tax exemption is part of a broader effort by states to gain an edge in recruiting top talent, but it also highlights the tension between preserving the student-athlete model and the commercial realities of modern college sports.

The details

Under the proposed legislation in Mississippi, college athletes who earn income through NIL deals would be exempt from paying state taxes on that revenue. The goal is to make Mississippi more attractive for top recruits, as other states like Florida, Texas, and Tennessee are considering similar tax exemptions. This comes as the NIL era has transformed college sports, with athletes now able to profit off endorsements and sponsorships, leading to the rise of a new class of multi-millionaire student-athletes and a growing industry of athlete representation.

  • The Mississippi proposal could be implemented as early as 2027.

The players

Trey Lamar

A Mississippi state representative who said "NIL is taking the country and coming by storm" and believes it's time for Mississippi to offer similar tax exemptions as other states.

Sarah Fuller

A former college athlete who missed out on the NIL era, and now works with dozens of schools to help put money into the pockets of college athletes.

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What they’re saying

“NIL is taking the country and coming by storm. Other states are doing it, and I believe it's time that Mississippi starts doing this as well.”

— Trey Lamar, Mississippi State Representative (The Clarion Ledger)

“That we're bringing them good NIL deals, that they understand what kind of deal they're getting into. That's the biggest thing for me, getting to work with these athletes and bring them opportunities I wasn't allowed to have.”

— Sarah Fuller, Former College Athlete (dallasnews.com)

What’s next

The Mississippi state legislature will consider the proposed NIL tax exemption, with the potential for it to be implemented as early as 2027 if approved.

The takeaway

The growing commercialization of college sports through the NIL era is raising concerns that the student-athlete experience is starting to resemble that of professional sports. Mississippi's proposed tax exemption is part of a broader effort by states to gain an edge in recruiting top talent, but it also highlights the tension between preserving the traditional college sports model and the realities of modern, big-money college athletics.