US Taxes Could Claim Part of Spain’s $50M World Cup Prize

The IRS can withhold up to 30% of Spain's $50 million prize from the 2026 FIFA World Cup, which was played across the United States, Canada, and Mexico. Because the tournament lacked a blanket tax exemption, the U.S. federal government treats the prize as income earned within its borders.

Individual players and coaching staff also face state-level 'jock taxes,' which apply to non-resident athletes based on the number of games played in each state. The tax rates and thresholds vary, so the total state tax burden depends on where Spain's matches were held, from the group stage through the final.

The 30% federal withholding is the maximum rate under U.S. tax law for non-resident aliens receiving U.S.-source income. Without a specific treaty provision or a tournament-wide exemption, the full amount is subject to that rate, though some tax treaties may reduce it for certain individuals.

The tax treatment has drawn attention because Spain's victory on U.S. soil created a unique financial obligation. Unlike past World Cups held in countries with different tax agreements, the U.S. tax code applies directly to the prize money, leaving the Spanish federation and its players to navigate the federal and state requirements.