Why It Matters

Winning an Olympic medal can come with significant financial rewards and potential tax consequences. Understanding how Olympic bonuses are taxed helps athletes and their advisors plan ahead, avoid surprises, and make informed decisions about prize money, endorsements, and residency. Even fans and families may be surprised to learn that while most medal bonuses are federally tax-free, exceptions and state tax rules can still affect an champion’s final take-home amount.

What are the cash bonuses for medalists?

U.S. Olympians receive cash bonuses with each medal.

For the 2026 games, these bonuses are:

• $37,500 for gold
• $22,500 for silver and
• $15,000 for bronze

The IRS previously viewed Olympic medals and bonuses as they view other prize winnings, like those gained from playing the lottery and casino winnings, meaning that they are taxable. Prize winnings are considered income by the IRS, hence the taxes attached to the cash winnings.

Does the tax still apply?

These bonuses are tax-free for most athletes.

In October 2016, President Obama signed the United States Appreciation for Olympians and Paralympians Act into law, which provides an exception to taxable prizes and awards for the value of the medals awarded, and cash bonuses paid, to U.S. Olympic or Paralympic athletes.

However, high profile athletes who earn at least $1 million per year are still on the hook for the victory tax (think of NHL players playing on the US Olympic hockey team or athletes with large NIL deals).

The effective date of this exemption is for any prizes and awards received after December 31, 2015, so it applies to medals and bonuses paid to 2026 Olympians.

Why was the tax repealed?

The Committee Report that accompanied the United States Appreciation for Olympians and Paralympians report provided the following as the reasons for the change:

The Committee believes that the athletes who represent the United States on the global stage at the Olympic and Paralympic games perform a valuable patriotic service. The athletes do so only after years of personal sacrifice to attain the level of excellence required to compete at the Olympic and Paralympic games.

The Committee also believes that during their years of training and preparation, many athletes representing the United States in the games earn little or no money from participation in their chosen sports and often defer pursuit of careers outside sports. Monetary prizes awarded by the USOC to medalists on the U.S. teams are intended to reward such sacrifices and to provide incentives to other athletes who seek to represent the United States on a global stage.

The Committee believes that providing this exclusion for the receipt of an Olympic or Paralympic medal and other prizes awarded by the USOC generally should be without tax consequences.

While Federal tax law excludes the value of the medals and cash prizes received by U.S. Olympians, state laws may differ depending on the Olympians state of residence.

Any other monetary perks for medalists?

Yes, there are other financial rewards available to U.S. athletes participating in the Winter Olympics, including the Stevens Financial Security Awards which provides the following long-term benefits for athletes making under $1,000,000 annually:

• A $100,000 grant, payable over 4 years starting at age 45 or 20 years after the games
• A $100,000 death benefit for beneficiaries

Mitchell has decades of experience advising professional athletes on the complex tax issues tied to competition, endorsements, and multi-state earnings. As a published author and national speaker on athlete taxation, he helps athletes and their teams navigate the rules and plan strategically for long-term success.