Georgia Bill Seeks Tax Exemption for NCAA NIL Income
A bill has been introduced in Georgia that would exempt college athletes from paying state income taxes on their NIL (Name, Image, Likeness) earnings.
Brandon Beach, a Republican state senator from the metro Atlanta area, presented the bill to the Senate’s finance committee on Tuesday. He informally referred to the legislation as the ‘Kirby Smart’ bill, named after the University of Georgia’s head football coach, who led the Bulldogs to NCAA championships in 2021 and 2022.
Beach explained that the bill’s goal is to attract top recruits to Georgia’s universities by providing a financial incentive. The University of Georgia competes in the SEC alongside schools in states like Tennessee, Florida, and Texas, where athletes don’t face state income taxes on NIL earnings.
“We need to give Kirby and other coaches the tools to compete,” Beach said.
Georgia’s state income tax is currently set at a flat rate of 5.39%. While this is much lower than the top tax rates in states such as California, New York, and Hawaii, it remains higher than the taxes in some states, including those with no income tax.
States that do not have state income taxes:
Alaska
Florida
Nevada
New Hampshire (interest and dividends are taxed)
South Dakota
Tennessee
Texas
Washington (capital gains are taxed)
Wyoming
Dan Wolken, a sports columnist for USA Today and Georgia resident, criticized the bill, accusing its supporters of attempting to “pamper wealthy college athletes with tax breaks.”
If enacted, Georgia would not be the first state to implement such a law. Beach noted that Missouri passed a similar law in 2023. To become law, the bill must be approved by Georgia’s Senate, General Assembly, and signed by Republican Governor Brian Kemp. The Republican Party holds majorities in both legislative chambers.
