The possibility has sparked debate among US lawmakers and tax commentators, with critics arguing that the tax burden could discourage international athletes from competing in events hosted in the United States.
Spain secured the 2026 FIFA World Cup title after edging Argentina 1-0 in the final at the New York New Jersey Stadium on Sunday, July 19. The victory earned the European champions a share of FIFA’s record prize pool for the expanded 48-team tournament.
According to FIFA, the winners are entitled to receive $50 million as part of the governing body's unprecedented $871 million prize fund.
However, under US tax laws, income earned from activities performed within the country is generally subject to taxation. Payments made to non-resident foreign athletes are typically subject to a 30 per cent federal withholding tax unless covered by a tax treaty or another exemption.
The potential tax implications have drawn criticism from several members of the US Congress.
Speaking to Fox News on Tuesday, Republican Congressman Tim Burchett of Tennessee described the possible tax deduction as unfair.
“I think it’s a rip-off,” Burchett said.
While acknowledging that similar tax rules apply to American athletes, he added:
“I’m not a fan of it, but Americans have to do it. American professional athletes do it, so they knew that when they came over here.”
Burchett argued that imposing such taxes on foreign athletes sends the wrong message at a time when the United States is positioning itself as a major destination for global sporting events.
“I’m not a big fan of the IRS,” he said. “They made that money over here, I guess, but I don’t like all that. 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.”
Adding to the discussion, social media commentator William Copus, popularly known as The Feedski, explained that previous FIFA World Cup host nations had typically granted broad tax exemptions covering FIFA, participating national football associations and players.
According to him, the United States adopted a different approach.
“While FIFA lobbied hard and eventually secured federal tax exempt status for itself and the national federations under section 501(c) of the tax code, that exemption stops at the federation level. Individual players, coaches, and staff are on their own.
“The default IRS withholding rate for foreign athletes earning income on US soil is 30% at the federal level. On top of that, players face state jock taxes in every state where they played or practiced. New Jersey, where the World Cup final was held, charges up to 10.75% state income tax and notably does not honor international tax treaties, meaning even players from countries with US tax agreements still owe New Jersey.
“California, where several group matches were played, charges 13.3%. Combined, players who spent significant time in high-tax states could face total US tax bills of up to 40% of their tournament earnings before their home country takes its own cut.”
BrandIconImage could not independently verify those claims.
The issue has also attracted bipartisan criticism in Washington.
Democratic Congressman Jonathan Jackson of Illinois condemned the potential tax rate, describing it as evidence of broader flaws in the US tax system.
“It’s wrong, and that kind of highlights something bigger,” Jackson said.
He further argued:
“It’s a classic example of what’s wrong with our taxation system. They should be paying the taxes as opposed to having tax loopholes. The people, the laborers that are working, they should not have to pay 30% of their income on taxes.”
Republican Congressman Burgess Owens of Utah also expressed concern over the possible tax deduction, although he praised the successful staging of the tournament.
“I have such an appreciation for soccer now,” Owens said. “I think it’s going to be a game changer for so many of our kids. And, so, I want to congratulate the president, everyone who made this happen.
“It is what it is here, unfortunately, in our country of taxes.”
If the 30 per cent federal withholding tax is ultimately applied without exemptions or treaty relief, Spain's World Cup earnings could be substantially reduced. Depending on the states where players competed or trained, additional state income taxes may further increase the overall tax burden, although the full extent of any deductions would depend on the specific tax circumstances and applicable laws.