Massive Tax burden looming for JJ Spaun following his US Open victory
Winning Big but Paying Hefty: The Tax Burden on Professional Golfers
JJ Spaun etched his name in US Open history with an epic 64-foot putt, securing his first Major title worth a whopping $4.3 million. However, this windfall comes with a hefty price tag.
According to AskGamblers, the federal tax on his winnings amounts to a substantial $1.7m, with a federal tax rate of 37% and a state-based tax of 3.07% in Pennsylvania. That's right, Spaun will hand over $1,591,000 to the feds and $132,010 to the state, leaving him with a manageable $2.58m take-home.
It's not just Spaun who's facing a hefty tax bill. Robert MacIntyre, fresh off his runner-up finish, earned $2.3m but will have a staggering tax bill of $930,450.40. Viktor Hovland, who came in third for $1.45m, can expect to part with $579,036.34 of his prize money.
In total, a whopping $8.61m in tax is expected to be paid on the $21.5m in prize money distributed across the field, with $7.95m going towards federal tax and $660,050 to state tax.
This isn't an unusual situation. Consider Talor Gooch, who faced a 47.5% tax on his $4m winnings at the 2023 LIV Golf Adelaide tournament.
Golfers need to consider more than just tax obligations. Spaun, for instance, is expected to pay his caddie Mark Carens 10% of his prize money, adding another $430,000 to his expenses.
Bonus: Tax Rates for Professional Golfers in the United States
A combination of federal and state income taxes is paid by professional golfers in the USA. The federal rate is currently 37%, while state tax rates vary by location. For events held in different states, golfers are typically taxed according to the state where the tournament takes place.
- Despite their substantial earnings in sports, such as JJ Spaun's $4.3 million win at the US Open, professional golfers face a significant portion of their income going towards taxes, with a potential federal tax rate of 37% and state-based tax rates varying by location.
- In addition to high tax rates, golfers also need to consider other financial obligations, such as paying their caddies a percentage of their winnings. For instance, JJ Spaun is expected to pay his caddie 10% of his prize money, amounting to an additional $430,000 in expenses.
