Explore the tax challenges facing athletes in the 2026 World Cup across the U.S., Canada, and Mexico.
The upcoming 2026 FIFA World Cup is poised to break records, not only in terms of the number of participating teams and matches but also in the complex tax implications it brings for athletes and teams. With 48 national teams competing in 104 matches across the United States, Canada, and Mexico, understanding the tax landscape is crucial for players, coaches, and officials alike.
The 2026 World Cup is more than just a sporting event; it is a significant logistical undertaking spanning three nations. Games are set to take place in various cities, each with its own tax rules. The United States alone will host 78 matches in 11 cities, culminating in the final match.
For participants, income derived from a match may be sourced to where the work is performed. This concept leads to a myriad of tax issues that are anything but straightforward.
Consider the situation of Kylian Mbappé, a French player who currently plays for Real Madrid. As he participates in group-stage matches in the U.S., tax issues arise not only from France but also from the states where he plays, such as New Jersey or Pennsylvania. Similarly, Cristiano Ronaldo, representing Portugal and playing in the U.S. for his team's group stages, will encounter federal tax inquiries despite competing in states like Texas and Florida, both of which lack a state income tax.
In the U.S., citizens and tax residents are subject to federal income tax on worldwide income. This often comes as a surprise to foreign athletes. The crux of the issue for non-resident entertainers is not about taxing worldwide income but rather determining whether the U.S. can levy taxes on income connected to work performed domestically.
Typically, a short visit will not change a player’s tax residency status, but it may create federal tax obligations for how they earn money during the tournament. This can include income from match fees, bonuses, media obligations, and even sponsor engagements performed during matches in the U.S.
Fortunately, tax treaties can mitigate the impact of potential double taxation. The U.S. has treaties with roughly 65 countries to address these concerns, although coverage can vary. Not every participating country has a treaty with the U.S., and even when a treaty applies, there are exceptions for athletes and entertainers that may allow local taxation of income earned during performances.
In cases where a player’s home country also taxes worldwide income, they may receive credit for U.S. taxes paid when they file returns in their home jurisdiction. This mitigates, but does not fully eliminate, the burden of double taxation.
State laws add an additional layer of complexity to the taxation landscape for World Cup participants. States with income taxes generally impose these taxes on both residents and non-residents earning income through their activities in the state.
Some states, such as California and Pennsylvania, employ a duty-day formula to tax athletes based on the number of days spent working relative to their total duty days for the season. This means that the places where athletes perform can determine their tax liabilities significantly.
However, several states like Florida, Texas, and Washington do not impose state income taxes on wages. This exemption can provide relief to athletes competing in cities like Miami and Dallas, thereby altering the financial equation for participating players.
Local taxes can further complicate the picture, particularly for cities that impose specific taxes on non-residents. While most cities hosting World Cup matches do not have dedicated city income taxes, exceptions do exist. Cities like Philadelphia and Kansas City impose local taxes, which can catch visiting athletes off guard.
For example, in Philadelphia, a local wage tax applies to non-residents earning money from work performed in the city. This tax is set at 3.43%, significantly impacting earnings from World Cup matches. Kansas City, MO also imposes a 1% earnings tax on income made by non-residents working within the city limits.
Consequently, the way the tournament's schedule is structured not only determines the games but also the financial implications for the athletes participating in each match.
The locations of matches throughout the tournament will influence where athletes earn their income and the governments that can tax that income. By comprehensively understanding their potential obligations, athletes can better navigate the tax implications of the tournament.
As the 2026 FIFA World Cup approaches, players like Mbappé and Ronaldo are likely to face unique tax challenges influenced by their home nations, the federal system in the U.S., state taxes, and even local regulations. The complexity of tax obligations underscores the importance of robust investing-in-sips-in-2026/">financial planning and professional tax advice for international athletes.
For further details on tax regulations applicable to athletes during this explosive tournament, consult the IRS General Tax Resources for the 2026 FIFA World Cup.