How much about your life would you change to stop paying an income tax?
Some college football players now face this question. College athletes began earning income from Name, Image, and Likeness (NIL) agreements in 2021. As these deals increase in value, more parents and agents will advise players to pay attention to taxes.
With this in mind, several university athletic departments recently launched an unusual ad campaign. They’re now touting that they’re located in a state without an income tax.
The Athletic reports that at least six schools promoted this distinction on social media. Here’s UCF’s post:
Journalist Alex Valdes notes:
“College athletes are not only taxed on their NIL earnings, but also on anything they receive of value. If an athlete receives a new car, for example, they have to pay taxes on it in accordance with its value.
Arkansas has tweaked its tax code so that NIL income is tax-exempt as an incentive to induce athletes to sign at the University of Arkansas or other in-state schools.”
As of 2026, nine states don’t levy an income tax:
- Alaska
- Florida
- Nevada
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
But these states still need funding. They still need to pay for schools and road maintenance. So instead, they often turn to a higher combination of sales taxes, property taxes, and fees.
If you’re a very high earner, that trade-off likely will work for you.
But for many people, your total tax burden may not look that different. In 2022, Georgia’s (income tax) tax burden was less than Florida’s (no income tax). Oregon’s tax burden (income tax) was essentially the same Washington’s (no income tax).
Not playing income tax feels great. Especially if you’ve lived and worked for years in a high-tax state.
But you should probably prioritize living the life you want.
