Mississippi House Passes Tax Exemptions for Name, Image, and Likeness Deals

The Mississippi state House passed a bill granting tax exemptions for Name, Image, and Likeness (NIL) deals, paving the way for student-athletes at Ole Miss and Mississippi State.

The bill aims to eliminate all NIL earnings from Mississippi state income tax over the next decade, potentially allowing student-athletes to earn multimillion-dollar deals, which both Ole Miss and Mississippi State could then use as bargaining chips to attract top-performing students to their athletic programs.

“NIL is taking the country and coming by storm,” said Mississippi state Rep. Trey Lamar (R). “Other states are doing it, and I believe it’s time that Mississippi starts doing this as well.”

According to Clarion Ledger, Ole Miss star quarterback Trinidad Chambliss could make as much as $5 million in NIL deals next year following his eligibility victory against the NCAA.

Several other states with competing universities have eliminated income tax altogether, including Florida, Texas and Tennessee. Additionally, Arkansas passed a bill in 2025 to exempt NIL money from income taxes, meaning that five SEC schools have a notable advantage when it comes to recruiting.

Mississippi schools, Lamar said, should be able to offer that same perk.

Lamar was also concerned about students receiving huge amounts of money at a very young age, he said, and incurring serious civil and criminal penalties, because they didn’t understand how to handle their money.

Not all state reps welcomed the change, with Republican Rep. Dan Eubanks saying that NIL deals should not receive special treatment.

“Why would they not be taxed like any other employee?” he asked Lamar in the House. “Is the only incentive for us doing this because other states are doing it? I just don’t know why they’re being treated different than anyone else in the world.”

The bill passed the state house and will go to the state senate.