Rory McIlroy will be hit with a huge tax bill after winning the Masters for a second time
08:08, 13 Apr 2026Updated 10:47, 13 Apr 2026
Rory McIlroy is set to lose some of his Masters winnings(Image: Hector Vivas/Getty Images)
Rory McIlroy will be required to give up a sizeable chunk of his Masters winnings after triumphing at Augusta National. The 36-year-old successfully retained the title on Sunday, following in the footsteps of Jack Nicklaus, Nick Faldo and Tiger Woods.
The Northern Irishman looked set to coast to victory after establishing a six-shot lead at the end of Friday but gradually saw his rivals gain ground over the weekend. In the final round, McIlroy kept his cool to score one-under-par and earn the coveted Green Jacket, edging out Scottie Scheffler by one shot.
After his career-defining moment a year ago, the six-time major winner was able to narrowly avoid another playoff. Consecutive Masters victories add to McIlroy’s legacy as one of the best golfers of his generation.
He was rewarded with the £3.36million ($4.5m) top prize after defending his Masters title. However, the two-time champion could pay more than a third of his winnings in taxes.
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“The tax position of an international sports person largely depends on where they are resident (i.e. in which country they pay their taxes) as well as where they perform the activities generating the earnings,” Jon Elphick, Managing Tax Partner at accounting firm Band, explained.
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“Typically, a level of local tax will be paid where the event takes place, but additional tax may then be due in the country the sports person lives. Most countries apply a system of marginal taxes, with the rates increasing as a person’s income increases.”
Applying those factors to the Masters prize money, Elphick continued: “The Masters takes place at Augusta National Golf Club in the US state of Georgia. The US tax system charges ‘federal tax’, a national tax applied on all US source earnings and all US nationals on worldwide income, and ‘state tax’ payable on earnings generated within specific states.
“The highest rate of federal tax is charged at 37 per cent, whilst state income tax in Georgia is currently charged at 4.99 per cent, meaning a total tax rate of 41.99 per cent will be applied in the US on the Masters winnings, and so US tax of up to $1,511,640 (£1,127,040) would be payable by the winner.”
McIlroy will not immediately be focused on prize money after winning his second Masters title(Image: Andrew Redington/Getty Images)
McIlroy previously resided in Florida but he has since bought a property in Wentworth, Surrey. Ahead of the Masters being decided, Elphick detailed how a UK resident may be taxed more than an American champion.
“Whilst US tax will be paid on the winnings, the winner may be tax resident outside of the US, meaning they could have local taxes to pay in additional to that, depending on where they live (note that nationality isn’t typically important, but where the person lives as a tax resident),” he said.
“A US winner’s tax liability will be limited to the tax paid in the US, whereas a UK resident winner would be liable to pay UK income tax at a likely rate of 45 per cent on the winnings as well (a liability of $1.62m).
“In this case, the UK tax would be reduced by the amount of tax paid in the US in order to avoid a “double tax charge”, so a UK winner would pay over $1,511,640 to the IRS in the US, and an additional $108,360 (£80,790)to HMRC in the UK).”
The combination of US and UK taxes would see McIrlory pay a combined £1.2m ($1.62m), according to those calculations. This would represent 36 per cent of his Masters winnings. However, that is unlikely to be McIlroy’s primary concern after savouring his triumph alongside his family at Augusta.
“It was a tough weekend but I’m so happy to hang in there and get the job done,” McIlroy said in his winner’s speech. “I wanted to come back and prove last year wasn’t a fluke.”