Masters Prize Money 2026 How Irish Winners Are Taxed
Last updated: 13 April 2026 • 7 min read
The 2026 Masters: Prize Money Breakdown
The Masters is the first major of the golf season, and it's happening right now at Augusta National. With Rory McIlroy, Shane Lowry, and Séamus Power all in the field, Irish eyes are very much on Georgia this weekend.
The total purse for the 2026 Masters is $20 million, with the winner taking home $3.6 million. Here's how the top prize money is distributed:
| Position | Prize Money (USD) | Approx. EUR Equivalent |
|---|---|---|
| 1st (Winner) | $3,600,000 | ~€3,300,000 |
| 2nd | $2,160,000 | ~€1,980,000 |
| 3rd | $1,360,000 | ~€1,250,000 |
| 4th | $960,000 | ~€880,000 |
| 5th | $800,000 | ~€735,000 |
| T10 | $440,000 | ~€405,000 |
| T20 | $220,000 | ~€200,000 |
| Made cut (last place) | ~$46,000 | ~€42,000 |
How Is Masters Prize Money Taxed for Irish Golfers?
This is where most sports fans switch off — but if you're interested in tax (and you're reading this blog, so you probably are), it's genuinely fascinating.
When an Irish golfer wins money at the Masters, the prize goes through three layers of taxation:
Layer 1: US Withholding Tax (30%)
The United States withholds 30% of prize money earned by non-resident foreign athletes. This is deducted at source — the golfer never sees it. So on $3.6 million, the IRS takes $1,080,000 right off the top.
However, Ireland and the US have a Double Taxation Agreement (DTA). This means the golfer can claim a credit for the US tax paid when filing their Irish tax return, so they're not taxed twice on the same income.
Layer 2: Irish Income Tax, USC, and PRSI
Professional golfers who are Irish tax residents must declare their worldwide income to Revenue. Prize money from the Masters is treated as self-employment income, subject to:
| Tax | Rate | Notes |
|---|---|---|
| Income Tax | 40% (higher rate) | Applies to earnings above €44,000 |
| USC (Universal Social Charge) | 8% (on income over €70,044) | — |
| PRSI (Class S) | 4% | Self-employed rate |
| Total marginal rate | ~52% | Combined on high earnings |
Layer 3: Double Taxation Relief
Here's the good news. The 30% US withholding tax is credited against the Irish tax bill. So the golfer doesn't pay 30% + 52% — they pay the higher of the two, which is the Irish rate.
Prize: $3,600,000 (~€3,300,000)
US withholding (30%): -$1,080,000
Irish tax liability (52%): ~€1,716,000
Less: US tax credit: -~€990,000
Additional Irish tax owed: ~€726,000
Net take-home: ~€1,584,000 (roughly 48% of the prize)
Note: This is a simplified example. Actual tax calculations depend on residency status, allowable deductions (caddie fees, travel, management fees), and the USD/EUR exchange rate at the time of payment. Players like McIlroy, who may have complex international tax arrangements, will have different effective rates.
Does Tax Residency Matter?
Enormously. Ireland taxes its tax residents on their worldwide income. If a golfer is not Irish tax resident — perhaps they've moved to a lower-tax jurisdiction — they'd only owe Irish tax on Irish-source income.
Several high-profile Irish sportspeople have changed their tax residency over the years, often moving to places like Monaco, Dubai, or Florida. This is entirely legal, but it requires genuinely living outside Ireland for the majority of the year (you must spend fewer than 183 days in Ireland to avoid being tax resident).
What Can Professional Golfers Deduct?
Before you feel too sorry for someone paying tax on a $3.6 million cheque, remember that professional golfers can deduct legitimate business expenses from their taxable income:
- Caddie fees and wages (typically 7–10% of prize money)
- Travel and accommodation for tournaments worldwide
- Management and agent fees (usually 15–20% of earnings)
- Equipment, clothing, and fitness costs
- Coaching fees
- Insurance
These deductions can significantly reduce the taxable figure. A golfer earning $3.6 million in prize money might have $800,000–$1,000,000 in legitimate expenses, bringing the taxable amount down to around $2.6–$2.8 million.
Sponsorship Income vs. Prize Money: Different Tax Treatment?
For top golfers, prize money is often just a fraction of their total income. Sponsorship deals, appearance fees, and endorsement contracts can dwarf tournament earnings.
The tax treatment depends on where the income is earned and the terms of the contract. A sponsorship deal with an Irish company is Irish-source income. A global Nike deal might be allocated across multiple jurisdictions based on where the golfer performs.
This is one reason why elite athletes employ specialist international tax advisors — the structures can get very complex very quickly.
Frequently Asked Questions
1. Is Masters prize money taxed in Ireland?
Yes, if the golfer is Irish tax resident. Prize money from the Masters is treated as self-employment income and is subject to income tax (up to 40%), USC (up to 8%), and PRSI (4%). A credit is given for US withholding tax already paid.
2. How much does the US withhold from foreign athletes?
The US withholds 30% of prize money earned by non-resident aliens. This is deducted at source before the prize is paid. Irish golfers can offset this against their Irish tax bill under the US-Ireland Double Taxation Agreement.
3. What is the total tax rate on sports prize money in Ireland?
The combined marginal tax rate for high earners in Ireland is approximately 52%, made up of 40% income tax, 8% USC, and 4% PRSI. After business expense deductions, the effective rate is usually lower.
4. Can golfers deduct caddie fees from their taxable income?
Yes. Caddie fees, travel costs, equipment, coaching, management fees, and other legitimate business expenses can all be deducted from taxable income. Caddies typically receive 7–10% of prize money, which is a significant deduction.
5. Does Rory McIlroy pay Irish tax?
Rory McIlroy's tax arrangements are private, but public reports indicate he has been tax resident in various jurisdictions at different points in his career. Irish tax residency depends on the number of days spent in Ireland — fewer than 183 days generally means you're not tax resident.
6. Are golf sponsorship deals taxed differently to prize money?
The source rules are different. Prize money is generally taxed where the tournament takes place, while sponsorship income may be allocated across jurisdictions based on the contract terms and where the golfer performs. Both are subject to income tax for Irish tax residents.
7. Is the Masters green jacket worth anything for tax purposes?
The green jacket is technically the property of Augusta National Golf Club and must be kept at the club after the winner's year. Since it cannot be sold and has no market value, it is not a taxable benefit. However, the prestige it confers can certainly lead to more lucrative sponsorship deals — which are taxable.
8. How does the Masters prize money compare to other majors?
The 2026 Masters purse of $20 million is comparable to the other three majors. The US Open typically has the largest purse ($21.5 million in 2025), followed by The Open Championship and PGA Championship. Tax treatment varies depending on the country hosting the event.
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