Mississippi Passes Bill to Make NIL Earnings Tax-Free

Legislation aims to boost recruiting for Ole Miss and Mississippi State

Published on Mar. 4, 2026

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The Mississippi House of Representatives has passed a bill that would exempt college athletes' name, image, and likeness (NIL) earnings from state income tax. The move is seen as a recruiting tool to help Ole Miss and Mississippi State compete with other SEC schools in states that don't have a state income tax, like Florida, Tennessee, and Texas. The bill still needs to pass the Mississippi Senate and be signed by the governor to become law.

Why it matters

NIL earnings have become an important factor in college recruiting, as athletes can now earn money from endorsements and other deals. By making NIL earnings tax-free, Mississippi hopes to give its schools a competitive edge in attracting top talent.

The details

Currently, Mississippi charges a 4% state income tax on earnings over $10,000 per year. The new bill would exempt NIL earnings from this tax, putting Mississippi schools on more equal footing with SEC rivals in states without a state income tax. NIL earnings would still be subject to federal income tax.

  • The Mississippi House of Representatives passed the bill on March 4, 2026.

The players

Mississippi House of Representatives

The lower chamber of the Mississippi state legislature, which passed the bill to make NIL earnings non-taxable.

Ole Miss

A public research university and member of the Southeastern Conference (SEC), located in Oxford, Mississippi.

Mississippi State

A public research university and member of the SEC, located in Starkville, Mississippi.

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What’s next

The bill must now pass the Mississippi Senate and be signed into law by the governor before taking effect.

The takeaway

By making NIL earnings tax-free, Mississippi is aiming to give its SEC schools a recruiting advantage and attract top college talent to the state.