College football players are now required to declare the money they receive through name, image and likeness deals as taxable income, a rule that has turned their off‑field earnings into a fiscal consideration as significant as the on‑field competition.
Because states such as Florida and Texas do not levy a personal income tax, athletes who reside there can keep a larger share of those earnings, creating a clear financial pull toward those jurisdictions.
Arkansas recently enacted a law that exempts college athletes from the state’s flat income tax on NIL payments received directly from their universities, a move that adds another incentive for players to stay or relocate within the Midwest.
Illinois, meanwhile, maintains a constitutionally protected flat income tax of 4.95 percent, a rate that sits above many of its neighbors and contributes to a broader perception of high taxation within the state.
A recent poll found that more than half of Illinois voters consider high taxes a top concern, and nearly 83,000 residents moved out of the state in 2024, with 95 percent of those relocations targeting states that offer lower combined state and local tax burdens.
The outflow is not limited to families; elite recruits and established players alike are factoring the tax differential into their decisions, prompting a quiet but measurable shift in where talent concentrates.
A Shifting Landscape
The competition over tax policy is becoming a subtle recruiting tool, as coaches and administrators increasingly discuss fiscal environments when courting prospects. While the on‑field stakes remain unchanged, the off‑field financial calculus now includes the state’s revenue structure, reshaping the geography of college football talent.