When Spain secured the 2026 FIFA World Cup title by defeating Argentina 1-0 at the New York/New Jersey Stadium, they didn't just win global gloryβ€”they also secured a massive $50 million payout from FIFA's prize pool.

However, recent reports indicate that the United States Internal Revenue Service (IRS) and state tax authorities could claim a significant portion of that prize money. Due to strict U.S. tax regulations on foreign athletes, Spain's historic earnings could face up to a 30% reduction.

The 30% Federal Withholding Tax

For previous international sporting events, host nations typically negotiated broad tax exemptions that covered FIFA, national federations, and the individual players. But for the 2026 tournament, the United States adopted a different approach.

While FIFA successfully secured federal tax-exempt status for itself and the national federations under section 501(c) of the U.S. tax code, that exemption stops at the federation level. Individual players, coaches, and staff members are not exempt.

Under U.S. law, income generated by non-resident foreign athletes on American soil is typically subject to a default 30% federal withholding tax, unless a specific tax treaty applies.

State "Jock Taxes" Add to the Burden

In addition to federal taxes, athletes face the American "jock tax." Professional athletes must pay state income taxes in nearly every state where they practice or play.

  • New Jersey: Hosted the final match and charges up to a 10.75% state income tax. Notably, New Jersey does not honor international tax treaties.
  • California: Hosted several matches and charges up to a 13.3% income tax.
pie title Projected Tax Breakdown of Prize Earnings "U.S. Federal Withholding (30%)" : 30 "Estimated State Jock Taxes (up to 10%)" : 10 "Remaining Player Earnings" : 60

When combined, players who spent significant time in high-tax states could face total U.S. tax bills nearing 40% of their earnings before their home country even takes a cut.

Reactions from Lawmakers

The heavy taxation of international athletes has drawn criticism from several U.S. lawmakers who worry it sends the wrong message as the country prepares to host more global sporting events.

Republican Congressman Tim Burchett of Tennessee criticized the policy, stating, "I think it’s a rip-off... We want to encourage these people to come over here and spend their money, and then we take a big chunk of it. We’ve got to get a better tax system."

Democratic Congressman Jonathan Jackson of Illinois also faulted the tax burden, arguing it reflects deeper systemic issues. "The people, the laborers that are working, they should not have to pay 30% of their income on taxes," Jackson said, suggesting that corporations should bear more of the burden instead of relying on loopholes.

The Bottom Line

Spain firmly established itself as the best football team on the planet in 2026. However, navigating the complex web of U.S. federal withholding and state jock taxes means their financial victory will be noticeably smaller than the headline $50 million figure suggests.