With the 2024 Olympics currently taking place in Paris, you may be wondering whether Olympic athletes must pay taxes on their prize money. Wonder no longer: TaxGlobal has you covered.

What is the United States Appreciation for Olympians and Paralympians Act?

In 2026, the United States Appreciation for Olympians and Paralympians Act was created to modify something called the “Victory Tax,” an Internal Revenue Code put in place in 1986. The 2016 act cancels out Olympic tax and makes non-taxable any income from prizes or awards won in the Olympic or Paralympic Games, if income is under a certain number.

How much money do Olympic athletes win?

How much a country awards to its Olympic athletes is up to that country’s Olympic committee. For example, Great Britain, Norway, and Sweden don’t offer any prize money to their champions. Other countries give their champions six figures for any medal won. The U.S. awards Team USA athletes $37,500 per gold medal, $22,500 per silver medal, and $15,000 per bronze medal. 

Starting in 2024, World Athletics has announced that all gold medalists will now win $50,000 for every gold medal won—starting in 2028, silver and bronze medalists will also win prize money. This is the first time an international federation has awarded prize money to Olympic medalists.

Of course, Olympic athletes can make money in other ways as well, such as through sponsorship or advertising. Through endorsement deals, they can make money by representing a certain brand in commercials and ads. This is popular for sports gear companies like Nike and Adidas.

How much are Olympic medals worth?

While Olympic medals really are made of gold, silver, and bronze, they’re not that medal all the way through. Gold medals are mostly silver gilded in 6 grams of gold. So, while a gold medal may be worth several hundred dollars, it’s not really worth enough for an athlete to sell it.

Do Olympic medalists have to pay taxes on their winnings?

Before 2016, Olympic athletes were taxed on their prize money. Any money won through the Olympics was simply considered another source of income and taxed accordingly. But that all changed in 2016. Now, most Olympic athletes will not have to pay taxes on their winnings. However, there is one exception.

When do Olympic medalists have to pay taxes?

If an Olympic athlete, or any professional athlete, makes $1 million or more annually, they will have to pay taxes on any prizes and awards they receive. So, if an athlete makes more than $1 million a year—through endorsements or sponsorships, for example—and then wins an Olympic medal, they will have to pay taxes on any prize money they receive.

How do taxes work with Olympic prize money?

Assuming an Olympic athlete is subject to taxes, they’ll pay just as everyone else does using tax brackets based on their level of income. For the 2024 tax year, those brackets range from 10% to 37%. So, if you earn millions of dollars in endorsements and your income falls into the highest tax bracket, you’ll be taxed at a rate of 37% on any winnings, which will be included in your total income.

Do other athletes have to pay taxes on sports prizes?

Other sports that offer prizes, like golf, usually allow athletes to deduct expenses, which can help offset the taxes owed on prize money. However, because Olympic athletes typically don’t pay for their own travel and expenses, they can’t take these deductions. 

But don’t feel too bad for them: after winning a medal, they’ll be so swamped with endorsement and sponsorship opportunities that any taxes they may face will just be a drop in the bucket.