Rory McIlroy is in the hunt for his first Masters title and a career Grand Slam, but the Northern Irishman could face a huge tax bill if he emerges victorious at Augusta National
Rory McIlroy is staring down the barrel of a hefty tax bill if he manages to clinch victory at the Masters and complete his career Grand Slam.
The golf ace, who has already triumphed at the US Open, PGA Championship, and The Open, is gunning for his first Augusta National win, which would not only be his fifth major title but also put an end to an 11-year drought.
Heading into the final round as the frontrunner, McIlroy is gearing up for a clash with Bryson DeChambeau. The Masters has disclosed that this year’s champ will pocket a cool $4 million from a hefty $21 million prize pot.
The runner-up won’t be leaving empty-handed either, bagging a sweet $2.2 million, third place nabs $1.4 million and fourth scoops just up of a million – but taxes might deduct almost half of it.
Tax expert Paul Barham from Forvis Mazars detailed it for Express Sport: “Any prize money earned will be subject to US federal tax, the top rate of which is still 37 per cent. Golfers will also have to pay state tax in Georgia at 5.39 per cent.
“The U.S tax will be paid by all the golfers playing at Augusta regardless of where they are tax resident and if they are a tax resident in the U.S, they shouldn’t pay tax on this prize money in any other country”, reports the Mirror US.
If McIlroy bags the Green Jacket, he could kiss goodbye to nearly half of the $4 million, potentially pocketing about $2.3 million after a whopping 42.39 per cent tax shave.
Rory McIlroy, based in Florida and considered a US resident, won’t be impacted by additional UK taxes, according to George Cannon, a tax advisor for professional golfers at Kreston Reeves.
Speaking to Express Sport, Cannon clarified: “As a non-UK resident for tax purposes, any winnings Rory receives in relation to overseas performances will not be taxable in the UK but will be subject to the relevant overseas taxes.”
Before his final day showdown, McIlroy shared his strategy: “I think the big thing is to not make it a re-match. Stay in my own little world. Stay in my cocoon, in my little bubble. Keep my head down.
“I have to put myself in my own world and concentrate on myself and set myself a score. If I can set myself a target and achieve it, hopefully that will be enough.
“He will do what he does – I have to stay firm and stay in my own little bubble. I have a few little notes written in the back of my yardage book that I glance at every now and again while I’m walking the fairway.
“Just little reminders. Little, you know, one- or two-sentence things. I mean, all the cliché mantras that you’ve heard before, really.”