GolfSports

Rory McIlroy’s Masters payday could take a serious tax hit

According to the Daily Mirror report by Tom Victor and Jake Bayliss, McIlroy collected the top prize after beating Scottie Scheffler by one shot at Augusta National. Payout reports published after Sunday's finish also listed the champion's prize at $4.5 million, about £3.36 million, after McIlroy successfully defended his Masters title and moved to six career major victories.

The win looked more comfortable earlier in the week than it did by the end. McIlroy built a six shot lead through 36 holes, then saw the field close in as the tournament tightened over the weekend. He still found enough in the final round to close it out, and that quickly shifted attention from the Green Jacket itself to the size of the tax bill attached to the winner's check.

Why the Augusta prize may not stay intact

The tax question is less simple than the headline number makes it sound. In the Mirror article, Jon Elphick, managing tax partner at Band, said the calculation depends largely on where the athlete is tax resident and where the income was earned. Because the Masters is played in Georgia, the starting point is United States tax, not just the size of the purse.

The IRS tax brackets still top out at 37 percent for 2026, and Georgia law provides for a 4.99 percent state income tax rate for taxable years beginning in 2026. Using those headline rates, the estimate cited by the Mirror put the United States tax bill at a little more than $1.51 million on a $4.5 million prize.

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Why residency could shape the final number

That is where the picture can change again. As explained in the Mirror report, a player treated as a UK tax resident may also face UK income tax on the same winnings, although the UK rules on foreign income taxed twice allow relief when tax has already been paid abroad, and the top additional income tax rate remains 45 percent. On that reading, the article's estimate was that a UK resident winner could still owe HMRC an extra payment after the United States liability is credited.

That would still leave McIlroy with a very large payday, just not the full headline amount that flashes across the screen after a major championship. For now, the bigger story is still the golf itself, a second straight Masters title, another place in Augusta history, and a win that held up even after the tournament tightened late. The money matters, but the Green Jacket is what will last.

Sources: Daily Mirror, PGA Tour, NBC Sports, Internal Revenue Service, Georgia General Assembly, GOV.UK.

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