How Much Do NFL Players Get Taxed?

Professional football players earn substantial incomes, yet a significant portion of their earnings is subject to various taxes. The complexity of their tax situation stems from diverse income streams and the unique nature of their profession, which involves working in multiple states throughout a season. Calculating an NFL player’s precise tax burden is not a simple task. Their financial obligations extend beyond standard income taxes, encompassing a range of federal, state, and local assessments.

Sources of NFL Player Income

NFL players generate income from several sources, all of which contribute to their gross taxable earnings. A primary component is the base salary, which is the predetermined amount a player receives for their services over a season. This W-2 income is subject to withholding tax by the team.

Players also receive signing bonuses, which are lump-sum payments. Roster bonuses are paid for being on the team’s roster, while workout bonuses are earned for participating in offseason training programs. Performance incentives, such as those for playoff appearances or Pro Bowl selections, contribute to their income.

Beyond team-related compensation, many players secure endorsement deals with external companies. This income, typically reported on Form 1099, does not have taxes withheld, requiring players to proactively manage their tax obligations.

Federal Income Tax Obligations

NFL players, as high-income earners, are subject to the progressive U.S. federal income tax system. This means their income is taxed at increasing rates as their earnings rise through different brackets. For tax year 2025, the top federal income tax rate is 37%, applying to single filers with taxable incomes exceeding $626,350 and married couples filing jointly with incomes over $751,600.

Federal income tax is calculated based on a player’s adjusted gross income (AGI), which is gross income minus certain deductions. Taxable income is then determined by subtracting either the standard deduction or itemized deductions from AGI. For 2025, the standard deduction is $15,000 for single taxpayers and $30,000 for married couples filing jointly. High-income individuals, including NFL players, often itemize deductions if their eligible expenses exceed the standard deduction amount.

State and Local Tax Considerations

One of the most intricate aspects of NFL player taxation is the impact of state and local income taxes, often referred to as the “jock tax.” This tax arises because players typically earn income not only in the state where their team is based but also in every state where they play away games. The “jock tax” is not a unique tax for athletes but rather the application of standard nonresident income tax rules to their multi-state work.

Income is generally apportioned to each state based on the number of “duty days” spent working there. Duty days include not only game days but also practice days, travel days, and other official team activities within a particular state. For example, if a player spends 10 out of 200 total duty days in a state with a 5% income tax, 5% of their total income would be subject to that state’s tax rate.

The varying income tax rates across states significantly impact a player’s overall tax burden. Some states have high income tax rates, while others have no state income tax, creating substantial differences in tax liabilities depending on a team’s schedule and location. Players may owe taxes to multiple states, potentially requiring them to file numerous state tax returns annually. Some cities also impose local income taxes.

Additional Tax Factors and Deductions

Beyond federal and state income taxes, NFL players are also subject to Federal Insurance Contributions Act (FICA) taxes, which fund Social Security and Medicare. For 2025, the Social Security tax rate is 6.2% for both the employee and employer, applied to earnings up to a wage base limit of $176,100. The maximum Social Security tax for an employee in 2025 is $10,918.20.

Medicare tax, at a rate of 1.45% for both employee and employer, applies to all taxable wages with no income limit. Additionally, an “Additional Medicare Tax” of 0.9% is imposed on wages exceeding $200,000 for individual filers, with no employer match for this additional tax.

Agent fees are another financial consideration. These fees, typically ranging from 1.5% to 3% of a player’s contract for NFL contracts, are paid directly by the player. For endorsement deals, agents may earn a higher percentage, commonly 10% to 20%. While agent fees related to contract negotiation may not always be deductible against W-2 income, fees for marketing and endorsement deals can be deductible against that specific income stream.

NFL Players Association (NFLPA) union dues are generally calculated as a percentage of an athlete’s salary, often around 1.1% of gross salary. These dues are typically collected through direct deduction from salary payments. Their deductibility as an unreimbursed employee business expense can be limited or unavailable.

Other common deductible business expenses for professional athletes, particularly if operating as a business entity, include costs for training, specialized equipment, and travel for competitions or endorsements not covered by the team. These expenses must be ordinary and necessary for their profession, such as accounting fees, certain legal fees, and professional subscriptions.