US Open Tennis 2026 Prize Money & Tax Guide: What Players Actually Take Home
For informational purposes only — not financial, tax, or legal advice. US and New York State tax rules for nonresident athletes are complex; work with a specialist familiar with multi-jurisdiction athlete taxation for your specific situation.
The 2026 US Open runs August 23 – September 13 at the USTA Billie Jean King National Tennis Center in Flushing Meadows-Corona Park, Queens, New York. Main draw play begins August 30; the women's final is September 12 and the men's final is September 13.
In 2025, the total prize fund reached $90 million — the largest in tennis history — with each singles champion earning $5 million.1 The first-round loser earned $110,000. None of those are take-home numbers.
The US Open is held entirely on US soil, which means the federal income tax and self-employment tax framework applies in full — unlike Wimbledon, where US players partially offset UK taxes with a Foreign Tax Credit. For US players, prize money is self-employment income: federal income tax, self-employment tax, and New York state income tax all apply. For non-US players, 30% is withheld at source by the USTA before the cheque is cut — plus New York state income tax on top. The champion (US citizen, Florida domicile) takes home roughly $2.6 million from a $5 million win. The champion domiciled in New York City keeps around $2.4 million.
This guide covers the full 2025 prize money structure (2026 amounts pending USTA confirmation before August 30), how US and New York taxes work on prize money, worked examples for each key round, how non-US players navigate federal withholding and the Central Withholding Agreement, NYC tax clarification, and the five financial mistakes that cost US Open players money every year.
2025 US Open singles prize money: round by round
The 2025 breakdown, confirmed by the ATP Tour and USTA:1 2026 amounts are expected to match or exceed these figures and will be confirmed by USTA before the main draw begins August 30.
| Round | Prize (USD) | Change vs 2024 |
|---|---|---|
| Champion | $5,000,000 | +39% |
| Runner-up | $2,500,000 | +39% |
| Semifinalists (×2) | $1,260,000 | — |
| Quarterfinalists (×4) | $660,000 | — |
| Round of 16 (×8) | $400,000 | — |
| Round of 32 (×16) | $237,000 | — |
| Round of 64 (×32) | $154,000 | — |
| Round of 128 / 1st round exit (×64) | $110,000 | — |
Prize money is per player. Doubles champion prize: $430,000 per pair. Mixed doubles champion: $175,000 per pair. Qualifying prize money: $18,000–$28,000 per round.
How US taxes apply to US Open prize money
Prize money is self-employment income
Tennis players competing in professional tournaments are independent contractors under US tax law — not employees of the USTA or ATP/WTA. Prize money is self-employment income, which means:
- Self-employment (SE) tax applies at 15.3% on net earnings up to the Social Security wage base ($184,500 in 20262), and 2.9% on amounts above that threshold. A player may also owe the 0.9% Additional Medicare Tax on net income above $200,000 (single filer).
- Federal income tax at 2026 brackets (10%–37%) applies to adjusted gross income after deducting half the SE tax paid and the $16,100 standard deduction.3
- New York state income tax applies to the full US Open prize because the income is 100% sourced in New York State (all matches played in Queens, NY). NY top rate is 10.9% for incomes above $25 million; most players fall in the 6.85%–9.65% brackets at typical prize levels.4
New York sources prize money at 100%
Unlike jock-tax situations involving team sport athletes (where NY allocates based on the fraction of duty-days spent in NY), tennis tournament prize money is sourced entirely in the state where the matches are played. A Florida-based player who earns $5 million at the US Open and $3.6 million at Wimbledon owes New York State income tax on the $5 million US Open amount — and owes New York nothing on the Wimbledon amount (which was earned in the UK). This is straightforward compared to duty-days allocation for, say, an NBA player on a team that plays 5 games in New York per season.
Worked examples: US player, Florida domicile
The following examples apply to a US citizen domiciled in Florida (no state income tax). All 2026 federal tax values per IRS Rev. Proc. 2025-32 and IRS IR-2025-244.3
First-round exit — $110,000
| Item | Amount |
|---|---|
| Gross prize money | $110,000 |
| SE tax (15.3% — full amount under $184,500 SS wage base) | −$16,830 |
| Federal income tax (~22% effective on taxable income) | −$13,721 |
| NY state income tax (~5.5% effective) | −$6,005 |
| NYC tax (FL resident: $0) | $0 |
| Net after taxes | $73,444 |
| Agent fee (10%) | −$11,000 |
| Tournament expenses (travel, hotel, coach, stringing, 2 weeks NYC) | −$12,000–18,000 |
| Net after taxes, agent, and direct expenses | ~$44,000–50,000 |
Quarterfinalist — $660,000
| Item | Amount |
|---|---|
| Gross prize money | $660,000 |
| SE tax (15.3% on $184,500 + 2.9% above + AMT surtax) | −$46,159 |
| Federal income tax (35% marginal, ~28% effective) | −$187,560 |
| NY state income tax (~6.4% effective) | −$42,195 |
| NYC tax (FL resident: $0) | $0 |
| Net after taxes | $384,086 |
| Agent fee (10%) | −$66,000 |
| Tournament expenses (travel, hotel, coach, 3 weeks NYC) | −$20,000–35,000 |
| Net after taxes, agent, and direct expenses | ~$283,000–298,000 |
Singles champion — $5,000,000
| Item | Amount |
|---|---|
| Gross prize money | $5,000,000 |
| SE tax ($184,500 × 15.3% + above at 2.9% + 0.9% Additional Medicare Tax on income above $200K) | −$211,078 |
| Federal income tax (37% marginal, ~35% effective — bracket tax only, AMT surtax in row above) | −$1,770,007 |
| NY state income tax (up to 9.65% at $5M, ~8.4% effective) | −$419,135 |
| NYC tax (FL resident: $0) | $0 |
| Net after taxes (FL domicile) | $2,599,780 |
| Agent fee (10%) | −$500,000 |
| Net after taxes and agent | $2,099,780 |
The champion keeps 52% of the headline prize before agent fees, 42% after. A NYC-domiciled champion adds approximately $194,000 in city income tax, reducing net after taxes to ~$2,406,000 (48%).
That NY tax bill is real — and the SE tax is on top of it.
A fee-only advisor who handles multi-tournament athlete returns — SE tax, NY sourcing, federal estimated payments, and retirement account strategy — can reduce what you owe and prevent the underpayment penalties that catch even experienced players off guard.
Get matched with an athlete tax specialist →For non-US players: 30% federal withholding and the Central Withholding Agreement
30% flat withholding at source
The USTA is required to withhold 30% of prize money paid to nonresident alien (NRA) players and remit it directly to the IRS before any cheque is cut. A player earning $660,000 as a quarterfinalist receives a net payment of $462,000 — the $198,000 withheld is a prepayment against (or in excess of) the player's US federal tax liability.5
Some countries have tax treaties with the US that reduce this withholding rate. However, the treaty rate for prize money earned by professional athletes is often excluded from treaty benefits — most US income tax treaties contain an "entertainers and athletes" article that reserves the right to tax at source regardless of residency. Players should confirm treaty applicability with a US international tax advisor before assuming the standard 30% can be reduced by treaty alone.
New York state tax applies on top
Federal withholding does not satisfy New York State income tax. NRA players who earn US Open prize money also owe NY state income tax on the NY-sourced prize amount. They must file NY Form IT-203 (Nonresident and Part-Year Resident Income Tax Return) separately. At $660,000 in NY-sourced income, NY state tax is approximately $42,000 additional. At $5 million, approximately $419,000 additional.
Central Withholding Agreement: reducing the 30%
An NRA athlete can apply to the IRS for a Central Withholding Agreement (CWA) (Form 13930), which is a contract between the player, a designated withholding agent, and the IRS that reduces federal withholding from 30% to a rate based on the player's expected net income after allowable expenses — agent fees, coach fees, travel, equipment, and other directly attributable tournament costs.5
For the US Open, a realistic CWA scenario for a quarterfinal-round player:
- Gross prize: $660,000
- Allowable expenses (agent 10% + coach travel + hotel + flights): ~$90,000
- Net income basis for withholding: $570,000
- Effective federal rate at net income level: ~30% vs. 30% flat on gross — CWA saves ~$27,000 in withholding upfront, with reconciliation at filing
The CWA application for the US Open should ideally be filed by April of the tournament year. Late applications may not be processed in time for the tournament.
Filing to recover excess withholding
If 30% was withheld but the player's actual US tax liability (after expenses) is lower, they file Form 1040-NR (US Nonresident Alien Income Tax Return) to claim a refund. Federal returns are due April 15 (or June 15 with automatic extension for NRAs who had no US wages). Players who also had other US-source income in the year must include that in the calculation.
Home-country Foreign Tax Credit
Most countries allow their residents to claim a Foreign Tax Credit for US taxes paid. This prevents paying US federal + home country tax on the same income. The effective total rate is typically the higher of the two countries' rates, not the sum. A Spanish player (47% top rate at home) who pays 30% US federal + ~8% NY state = ~38% total US tax on $5M effectively pays their home country's 47% rate, with the US taxes fully absorbed as credits. The cash-flow impact is real, however — the player funds the US bill first, then claims the credit later at home country filing time.
NYC tax: only applies to city residents
New York City income tax (up to 3.876%) applies only to NYC residents — people who are domiciled in or have a permanent place of abode in the city. A player staying at a hotel in Manhattan for the US Open is not an NYC resident and owes no NYC income tax on their prize money. Only players who actually live in one of the five boroughs year-round (or meet the statutory residence test of 183+ days with a permanent place of abode) owe NYC tax.
For players evaluating whether to rent an apartment in New York City vs. staying in hotels during the US Open season, the 183-day test is a meaningful financial threshold. Under NY tax law, a "permanent place of abode" combined with spending 183 days per year in NY can create New York resident status — subjecting worldwide income to NY and NYC tax, not just US Open prize money.
Domicile matters: Florida vs. New York for US-citizen players
For US players, domicile determines which state taxes worldwide income (not just the NY-sourced prize). A player domiciled in Florida owes no Florida income tax on Wimbledon or Australian Open earnings — those are outside NY's reach. A player domiciled in New York may owe NY income tax on all income, worldwide, subject to credits for taxes paid to other jurisdictions.
| Scenario | $5M US Open win (net of tax) | $3.6M Wimbledon win (net of US tax) |
|---|---|---|
| FL domicile (no FL income tax) | ~$2,557K (51%) | ~SE tax only (FTC offsets federal) |
| NY domicile (10.9% top NY rate) | ~$2,363K (47%) | NY tax also applies to UK earnings (with credit for UK taxes paid) |
| NYC domicile (NY + 3.876% NYC) | ~$2,170K (43%) | NYC tax also applies to UK earnings (with credits) |
For a player earning $10M+ across multiple Grand Slams in a single year, domicile in a no-income-tax state (Florida, Texas, Nevada) versus New York can mean $500,000–$1,000,000 in annual state tax savings. See the Athlete Domicile & Residency Planning guide for the full framework, FL checklist, and the NY statutory residence trap.
Endorsement income at the US Open: NY apportionment
New York State taxes not only prize money earned in NY, but also a portion of endorsement income that is attributable to New York activities. For a touring tennis player, NY applies an allocation method based on performance or duty days spent in New York relative to total performance days worldwide.
Worked example: A player with a $2M annual racket endorsement contract competes in approximately 20 tournaments per year, averaging 5 performance days each (100 total). The US Open accounts for roughly 14 days (2 weeks of competition). Under a duty-days allocation: $2M × (14 ÷ 100) = $280,000 of endorsement income is NY-attributed. At a 9.65% NY rate, that's approximately $27,000 in additional NY state tax on endorsement income alone — beyond the tax on prize money.
Players with significant endorsement contracts should document their total worldwide performance day count and work with a NY tax advisor to confirm the allocation method and reduce the NY-attributed fraction where possible.
ATP and WTA pension: what the US Open contributes
US Open prize money does not flow directly into the ATP or WTA pension fund. Both plans are funded by annual contributions from the tour based on a player's end-of-year ranking, not by individual tournament prizes.
Current ATP pension structure (2025 data; 2026 expected to be comparable6):
- Tier 1 (top 150 singles + top 50 doubles): $129,550 ATP contribution per year
- Tier 2 (next 100 singles): $20,000 ATP contribution per year
A deep US Open run in late August earns significant ranking points and can shift a player's year-end ranking into Tier 1 territory, which determines the pension contribution for the following year. The pension itself should not be relied upon as the primary retirement vehicle — the maximum annual ATP contribution is $129,550, far below what a player earning $5M per year needs to fund a 50-year post-playing retirement. Solo 401(k) on endorsement income ($72,000 combined limit in 20263) and backdoor Roth IRA ($7,500 in 2026) are the primary retirement vehicles for independent-contractor tennis players.
Pre-tournament financial checklist
- Q3 estimated tax payment. US Open prize money falls in Q3. The Q3 estimated tax deadline is September 15 — just two days after the men's final. US players must estimate their US Open income and include it in the Q3 payment to avoid underpayment penalties. Advisors should plan for this before the player arrives in New York.
- NY non-resident filing registration. Players with no prior NY tax filing history should confirm their NY non-resident filing obligations before the tournament. NY Form IT-203 is due April 15 of the following year.
- CWA application (NRA players). If you are a nonresident alien and have not filed a Central Withholding Agreement for 2026, the USTA will withhold 30% before paying prize money. CWA applications (Form 13930) should be submitted well in advance — ideally before April. Late applications may not be processed in time.
- Endorsement income attribution memo. Players with active endorsement contracts should have their US or NY tax advisor prepare a written calculation of the NY-attributed portion for 2026. This supports the filing position and reduces audit risk.
- Deductible expense tracking. Agent fees attributable to the US Open, coach travel, hotel, transportation, equipment, and court-time costs are IRC §162 deductible for self-employed players. Document every expense from the moment you arrive in New York.
5 common financial mistakes at the US Open
1. Treating the prize cheque as take-home
There is no withholding for US players at source. A US player who wins $660,000 as a quarterfinalist receives the full $660,000 — then owes approximately $276,000 in combined federal, SE, and NY state tax at the next filing or quarterly payment deadline. Players who spend the gross prize before the tax bill arrives routinely face a cash-flow crisis in Q3 or at April filing time.
2. Ignoring the NY state filing requirement
Many US players who live in Florida or Texas assume they are done with state tax after playing in low-tax states all year. The US Open is in New York. Every dollar of prize money earned there is NY-sourced income, and NY Form IT-203 is required if NY-source income exceeds certain thresholds. Failure to file results in notices, interest, and penalties. NY is aggressive about nonresident athlete income compliance.
3. NRA players assuming 30% withholding is final
The 30% federal withholding is a down payment, not a final settlement — and NY state tax is owed on top of it. An NRA quarterfinalist who receives $462,000 net of federal withholding still owes approximately $42,000 to New York State. Many foreign players discover this tax bill only when their US tax advisor files the IT-203 months later.
4. Missing the endorsement apportionment
Players who have annual endorsement contracts focus on prize money and miss that the US Open allocates a portion of their endorsement income to New York. On a $2M endorsement, that can be $27,000 or more in additional NY state tax that was not withheld and needs to be accounted for in quarterly payments or IT-203 filing.
5. Not funding retirement during the high-earning window
The US Open provides a compressed, large-income event that is ideal for maximizing retirement contributions. The $72,000 Solo 401(k) employer contribution (25% of W-2 wages, or 20% of net SE income) and $7,500 backdoor Roth IRA can absorb a meaningful portion of the post-tax prize and begin compounding in tax-advantaged accounts. Players who receive $400,000+ at the US Open and don't maximize these contributions are leaving a significant tax-deferral opportunity on the table every year.
Work with a specialist before you file
The intersection of self-employment tax, federal income tax at 37% marginal, New York nonresident sourcing rules, the quarterly estimated tax calendar, and optional CWA planning for NRA players is not a standard personal tax situation. A specialist who handles US tournament athlete returns can model your specific situation before the US Open and prevent surprises at filing time.
Related guides
- Professional Tennis Player Financial Planning Guide 2026 — SE tax mechanics, multi-country tournament taxes, ATP pension, endorsement structure, and the weekly expense reality for ATP/WTA players
- Wimbledon 2026 Prize Money & UK Tax Guide — the UK comparison: HMRC Foreign Performers withholding, how the Foreign Tax Credit works for US players, and the Wimbledon endorsement apportionment trap
- Athlete State Domicile & Residency Planning — FL, TX, and NV domicile strategy, how to establish domicile, the NY 183-day statutory resident trap, and the CA aggressive enforcement framework
- International Athlete US Taxes Guide — substantial presence test, worldwide income for US residents, FBAR, FATCA, and the NRA estate tax trap
- Endorsement Income: Tax & Entity Structure — S-corp election, image-rights licensing, and SE tax math for endorsement-heavy athletes
Sources
- ATP Tour — US Open 2025 Prize Money Announcement. Total purse $90,000,000 (first tennis event to reach $90M); singles champion $5,000,000; runner-up $2,500,000; round-by-round breakdown confirmed. 2026 prize money pending USTA announcement before August 30.
- IRS.gov — Self-Employment Tax (Topic 554). SE tax rate 15.3% on net earnings up to the Social Security wage base; $184,500 SS wage base for 2026 per IRS Rev. Proc. 2025-32; 2.9% rate on net earnings above wage base; 0.9% Additional Medicare Tax on income above $200,000 (single).
- IRS Revenue Procedure 2025-32. 2026 tax year inflation adjustments: $16,100 standard deduction (single); $184,500 SS wage base; $626,350 threshold for 37% top marginal rate (single); $7,500 IRA contribution limit; $24,500 401(k) elective deferral limit; $72,000 Solo 401(k) combined limit.
- New York State Department of Taxation and Finance — Form IT-203 Instructions. Nonresident and part-year resident income tax; sourcing of tournament prize money to New York; NY income tax rates (4%–9.65% for income up to $5M; 10.3% on $5M–$25M; 10.9% above $25M); NYC income tax applies to residents only.
- IRS.gov — Withholding Tax on Payments to Foreign Artists and Athletes. 30% flat withholding on US-source income paid to nonresident alien athletes; Central Withholding Agreement (Form 13930) mechanics and application process; treaty rate exceptions.
- ATP Tour — ATP Player Pension Plan 2026. Tier 1 ($129,550/yr) and Tier 2 ($20,000/yr) annual contribution structure; 300 qualifying players; end-of-year ranking-based eligibility, not per-tournament.
Tax values verified as of August 2026 against IRS and New York State sources. Prize money table reflects 2025 confirmed amounts (2026 pending USTA announcement). NY tax rates, nonresident filing thresholds, ATP pension contribution amounts, and IRS withholding rules may change; verify current values with a qualified specialist before relying on any figure for planning purposes.