State taxes

Like everyone else, athletes pay federal income taxes. But the key difference lies at the state level. Some states—such as Florida or Texas—have no state income tax, while others, like California, tax top incomes at rates above 13 percent. In new research, we study how this tax difference affects the success of college basketball programs. We analyze all Division I men’s basketball teams from 2016 to 2024 and compare their performance before and after NIL rules began.