Mississippi is axing tax on NIL payments despite being the poorest state in the USA

Mar 3, 2026 - 19:00

GLENDALE, ARIZONA - JANUARY 08: Trinidad Chambliss #6 of the Ole Miss Rebels reacts after a play against the Miami Hurricanes in the fourth quarter during the 2025 College Football Playoff Semifinal at the VRBO Fiesta Bowl at State Farm Stadium on January 08, 2026 in Glendale, Arizona. (Photo by Ronald Martinez/Getty Images) | Getty Images

Mississippi is becoming the latest state willing to serve as a tax shelter for student athletes. State representatives voted on Monday to make athlete NIL earnings exempt from state income tax, putting college recruiting over the dire needs of underpriveleged citizens in the state.

Rep. Trey Lamar, a state Republican, said that Mississippi needed to keep up with other SEC schools that don’t have income tax on NIL payments — but as always, the devil is in the details.

“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.”

The core problem with Lamar’s justification is that his “others states are doing it” line includes Texas, Florida, and Tennessee, which already have no state income tax independent of NIL provisions. The only state that explicitly passed a no NIL tax measure was Arkansas. Moreover, Mississippi is the poorest state in the nation and is wholly reliant on $33B in federal funding to offset lagging state income tax revenue, which has been made worse by plans to slash tax rates on corporations and the highest-income earners, which experts say will have a profound impact on basic infrastructure in the state.

Critics of the bill came from both sides of the aisle, with fellow republican Rep. Dan Eubanks wondering why the state is entering a race to the bottom.

“Why would they not be taxed like any other employee? Is the only incentive for us doing this because other states are doing it? I just don’t know why they’re being treated different than anyone else in the world.”

Despite objections from numerous politicians, the measure passed the state house and will make its way to the senate, where the measure is expected to be adopted.

It’s unclear what, if any, impact this will have on recruiting for Ole Miss and Mississippi State — which is the driving force behind passing the bill. It’s a massive boon for Mississippi quarterback Trinidad Chambliss, who is set to make $5M in NIL payments in 2026 — now he’s doing so tax free.