How Much Of An IPL Player’s Salary Actually Reaches Them After Taxes?

IPL 2026 came to an end on May 31, 2026 with Royal Challengers Bengaluru lifting the trophy, bringing an end to another thrilling season of the Indian Premier League. While players sign multi-crore franchise contracts, their actual earnings are not the same as their bid value.

The IPL features some of the highest player salaries each season with top cricketers earning multi-crore franchise contracts. In IPL 2026, Rishabh Pant was among the highest-paid players with a contract of around Rs 27 crore which was followed closely by Shreyas Iyer at Rs 26.75 crore.

Virat Kohli and Rohit Sharma were retained at approximately Rs 21 crore and Rs 16.30 crore respectively, while Shubman Gill’s contract stood at Rs 16.50 crore. At the other end of the scale, uncapped 15-year-old batter Vaibhav Suryavanshi had a standout season and was contracted at about Rs 1.10 crore, highlighting the wide range of earnings across experience levels.

How IPL earnings Are Taxed for players

Experts note that IPL earnings are not just subject to deduction of tax at source (TDS), but are ultimately taxed under broader income tax provisions based on the nature of professional income and total earnings.

For Indian players, franchises usually deduct around 10 per cent TDS under Section 194J, which is not the only tax liability.

Gaurav Makhijani, managing partner at Makhijani Gera & Associates LLP said, “IPL earnings for Indian cricketers are taxed under the head ‘Profits and Gains from Business or Profession’, with income from retention fees and match fees treated as professional income under Indian tax law.”

Abhishek Soni, Ceo tax2win said, “IPL income is added to other taxable earnings, such as endorsements, BCCI payments, investments and business income, and taxed at applicable slab rates. Both IPL fees and endorsement income are treated as professional income, allowing players to claim eligible business expenses under the Income-tax Act.”

Effective Tax Impact On High-Earning IPL Players

Adding to the overall tax structure, experts point out that the tax burden can be significantly higher for top-earning players due to surcharge and cess components.

According to Gaurav, for high earning players, the effective tax rate may be around 38-39 per cent for those earning in the Rs 25-30 crore range, depending on total income, surcharge, deductions and the tax regime chosen.

Vaibhav Suryavanshi: Tax Treatment of Minor’s IPL Income

With Vaibhav Suryavanshi emerging as one of the standout young performers of IPL 2026, media reports suggest that his net worth is already in the range of around Rs 7 crore, driven by his IPL contract earnings and on-field awards. Income earned by a minor is not taxed separately and is generally added to the income of the parent with higher taxable income under Section 64(1A) of the Income Tax Act.

On the tax treatment of Vaibhav, Makhijani explained that income earned from a minor’s own skill or talent is not clubbed under Indian tax law.

He added, since Suryavanshi’s IPL earnings arise from his personal sporting ability, such income would not be clubbed despite his being a minor, though any incidental income may still be subject to clubbing.

Tax Rules For Foreign IPL Players

The tax treatment for foreign players follows a separate framework under Indian tax law.

Abhishek said that foreign cricketers participating in the IPL are generally treated as non-residents for Indian tax purposes. Their IPL-related income is taxable in India under Section 115BBA at a flat rate of 20 per cent (plus surcharge and cess). IPL franchises are required to withhold tax under Section 194E before making payments to overseas players.

He added, “Foreign players may also claim relief under Double Taxation Avoidance Agreements (DTAA) and generally avail foreign tax credit in their home country to avoid double taxation on the same income.”