In most states, high school athletes can get paid, but only for the right kind of work. Roughly 44 states and the District of Columbia allow high school athletes to earn money from their name, image, and likeness (NIL): endorsements, sponsored social media posts, personal appearances, and similar commercial activity. What they still cannot get paid for is playing the sport itself. That line, along with state law, tax rules, and contract requirements for minors, shapes everything about how this actually works.
What NIL Pays For, and What It Doesn’t
Every state that permits high school NIL draws a hard distinction between commercial work and pay-for-play. Compensation has to be tied to a specific service: filming a promotional video, making a personal appearance, posting sponsored content, signing autographs. Any arrangement where money flows to an athlete just for being on the roster or performing well in games looks like a salary, and that remains prohibited at every level of amateur sports.
The NFHS has described high school NIL opportunities as reaching well beyond traditional endorsements into personal branding and social media content, but the underlying principle stays the same: you get paid for the marketing work, not the athletic performance.1NFHS. Name, Image and Likeness for Interscholastic Athletes – What Does it Look Like
Where High School NIL Is Legal
The vast majority of states explicitly permit high school athletes to earn NIL income. A small number still prohibit it under traditional amateurism rules enforced by their state athletic associations. Where no specific NIL statute exists, the decision often falls to the state’s high school athletic association, which may allow or restrict deals through its own bylaws.
A family moving across state lines can therefore run into entirely different rules about whether their teenager can accept a sponsorship. Before signing anything, check both the state law and the state athletic association’s current policy. What is allowed in one state may cost eligibility in another.
Rules That Apply Almost Everywhere NIL Is Allowed
No School Branding or Facilities
Wearing your school uniform, displaying a team logo, or filming on campus during a paid promotion will almost certainly create an eligibility problem. The rule across states is consistent: the deal must be about you as an individual, not you as a representative of your school or team. Some associations are strict enough that even an accidental team reference in a social media caption can trigger a review.
Prohibited Industries
High school athletes face tighter category restrictions than college athletes. Deals involving gambling, alcohol, tobacco, weapons, and other adult-oriented products are typically off-limits, regardless of the athlete’s age. A senior who has turned 18 still cannot promote a sportsbook in most states that allow NIL.
Disclosure
Most states that permit high school NIL require athletes to report their deals to their school or state athletic association. Timelines and thresholds vary, but the expectation is transparency about any commercial arrangement before it becomes a problem. Failing to disclose a deal, even a small one, can create eligibility headaches that are harder to fix after the fact. Keep copies of every contract, every payment confirmation, and every piece of correspondence with a brand or agent.
Contracts When the Athlete Is a Minor
A minor generally cannot enter into a legally binding contract on their own. In most states, NIL agreements signed by athletes under 18 require a parent or legal guardian to co-sign or act as the authorized representative. Without that parental involvement, the contract may be voidable, meaning either party could walk away from it.
Some states have adopted or are considering protections modeled on entertainment industry laws that require a percentage of a minor’s earnings to be placed in a trust account the child can access at age 18. Under the most established version of these protections, 15% of the minor’s earnings must go into a blocked trust. Families in states without a mandatory trust requirement can set one up voluntarily, and it is worth doing if the earnings are significant.
Any NIL contract should clearly spell out the scope of work, payment terms, duration, exclusivity provisions, and termination rights. A deal that locks a 16-year-old into a multi-year exclusive endorsement for a few hundred dollars is a bad deal, even if the money feels exciting at the time. Families with substantial NIL opportunities should seriously consider hiring a sports attorney to review agreements before signing.
Taxes: The Part Most Families Miss
NIL income is not a gift and it is not a scholarship. The IRS treats it as self-employment income, which means a high school athlete earning money from endorsements is essentially running a small business in the eyes of the federal government.2Internal Revenue Service. Name, Image and Likeness (NIL) Income
The $400 Threshold and Self-Employment Tax
If a student earns $400 or more from NIL activities in a year, they must file a federal tax return and pay self-employment tax, regardless of whether they owe regular income tax.2Internal Revenue Service. Name, Image and Likeness (NIL) Income The self-employment tax rate is 15.3%, covering both the employee and employer shares of Social Security and Medicare. A teenager who earns $5,000 from a few sponsorship deals could easily owe $700 or more in self-employment tax alone, before any income tax on top of that.
NIL earnings are reported on Schedule C (Profit or Loss from Business), filed with Form 1040. Legitimate business expenses tied to the NIL work, such as travel to a paid appearance or equipment used to create sponsored content, can reduce net income on that schedule.
Quarterly Estimated Payments
Because no employer withholds taxes from NIL payments, athletes who earn enough may need to make quarterly estimated tax payments using Form 1040-ES. For the 2026 tax year, the quarterly deadlines are April 15, June 15, September 15, and January 15 of 2027.3Taxpayer Advocate Service. Making Estimated Tax Payments Missing these deadlines can produce underpayment penalties that show up as an unpleasant surprise at tax time. Plan for this from the first dollar earned.
Dependent Status
Most high school athletes are still claimed as dependents on their parents’ return, which affects their standard deduction. For 2026, a dependent’s standard deduction is the greater of $1,350 or $400 plus their earned income. NIL income counts as earned income for this calculation, so an athlete earning several thousand dollars gets a somewhat larger deduction than a dependent with no earned income. The self-employment tax still applies regardless.
Protecting College Eligibility
Earning NIL income in high school does not, by itself, disqualify an athlete from competing in college. The NCAA’s current position is that prospective student-athletes may pursue the same types of NIL opportunities available to current college athletes without losing eligibility, so long as the deals comply with the laws of the state where the athlete lives.4NCAA.org. NIL (Name, Image, Likeness)
The line that cannot be crossed is recruiting inducements. If a college, its boosters, or anyone connected to a school’s athletic program offers money or an NIL deal specifically to influence where a high school athlete enrolls, that arrangement violates NCAA rules. A legitimate NIL deal with a local business is fine. An NIL deal that conveniently appears right after a campus visit and disappears if you choose a different school is the kind of arrangement that draws NCAA scrutiny.
NCAA Disclosure
High school athletes planning to compete in Division I must disclose all third-party NIL deals worth $600 or more to the NCAA through its online compliance platform, NIL Go. The disclosure window covers deals made since July 1, 2025, or the start of junior year, whichever is later. Smaller payments from the same source that add up to $600 or more also have to be reported. The deadline is within 14 days of starting full-time classes at the college or before the athlete’s first Division I game, whichever comes first.4NCAA.org. NIL (Name, Image, Likeness)
Keeping organized records throughout high school makes this process far easier. Save every contract, every payment receipt, and every written communication tied to NIL activity.
International Students on F-1 Visas
High school athletes in the United States on F-1 student visas face a much more restrictive situation. Federal immigration law tightly limits the employment options available to F-1 visa holders, and the penalties for unauthorized employment are severe: visa termination, deportation, and potential bars on future legal status.
Most NIL activity, including autograph sessions, sponsored social posts, and appearances, qualifies as active income for work performed. Under F-1 rules, that work is generally treated as unauthorized employment unless it fits narrow exceptions like on-campus jobs of 20 hours or less per week. The Department of Homeland Security has said only that it continues to assess the issue. Any international student considering NIL should consult an immigration attorney before signing anything.
Getting Paid to Play: A Different Path
NIL is not the only way high schoolers earn money in sports, but the alternative is fundamentally different. Professional developmental programs pay salaries to play. Overtime Elite offers six-figure salaries along with housing, health coverage, and an academic program for players as young as 16.5TIME. Inside the New Basketball League Paying High Schoolers Six-Figure Salaries The NBA G League’s Ignite program used a similar model and concluded its final season in March 2024.6NBA G League. NBA G League Ignite To Conclude Its Final Season International clubs in Europe and elsewhere continue to sign American teenagers, particularly in basketball and soccer.
Signing any of these contracts makes the athlete a professional and ends amateur status, which cuts off high school and college eligibility. That decision is effectively permanent for eligibility purposes and should be treated that way.