It Just Means More Money: State Of Mississippi Aims To Pass Bill Exempting Athletes From Taxes On NIL Earnings

The State of Mississippi is one step closer to following others in the form of no state income tax on NIL earnings made by athletes participating in college athletics, in hopes of attracting more stars to schools like Ole Miss and Mississippi State. 

On Monday, the Mississippi House passed HB 4014.

This bill would exempt NIL compensation from state income taxes, which is what we have seen from the State of Arkansas in 2025, as plenty of others are hoping to attract some of the best talent in college athletics. 

Right now, states like Florida, Tennessee, Washington, Wyoming and Nevada do not force their citizens to pay state income taxes, which is obviously a financial benefit for those who work different jobs in these parts. 

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But, the difference in what Mississippi is doing, compared to others, is that the regular citizen will continue paying state income taxes, while athletes would be spared the extra expense on their earnings. I'm sure the teachers, construction workers and regular hard-working citizens of the state are happy about the potential passage of this new law, if it passes through the Senate. 

"NIL is taking the country and coming by storm," he said. "Other states are doing it, and I believe it's time that Mississippi starts doing this as well," Rep. Trey Lamar, R-Senatobia said this week. 

Mississippi Hoping To Join Other States In NIL Exemptions 

Right now, Arkansas is the latest state to allow athletes not to pay state income taxes on their NIL earnings, though Mississippi looks as though it's close behind.

 I can't say I'm surprised by this, given the popularity of college sports within the state, and how much money some athletes are making off NIL deals. 

And yes, the State of Mississippi is planning to phase out state income taxes by 2040, with a decrease to 3% scheduled by the year 2030. 

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But, Mississippi representatives are hoping this new NIL exemption will go into place by next year, putting schools like Ole Miss and Mississippi State on a level playing field with others, like Tennessee and Florida. 

They say college sports are a key factor in economic growth, and a driving force for tourism on college football weekends. 

Now, we're about to see how excited the citizens of the State of Mississippi are when it comes to 18–24-year-old athletes not having to pay state income taxes on their NIL earnings, if the law is formally passed. 

Anything for college football, right? I guess so. Now, we wait on the Mississippi Senate to join in on the college athletics fun.