What Americans Should Know About Olympic Medals, Prize Money, and Taxes

With the 2026 Winter Olympics in Milan–Cortina approaching, Americans are once again watching elite athletes prepare for the biggest stage in sports. For fans, the focus is on gold medals, podium moments, and national pride.

But for the athletes themselves, especially those representing the United States, winning an Olympic medal also raises a practical question that surprises many people: Are Olympic medals and prize money taxed?

The answer is more complex than most Americans realize. Thanks to changes in U.S. tax law, many Olympians no longer pay federal income tax on their medals or associated prize money, but that relief comes with important limits, exceptions, and state-level complications.

Here’s what Americans should know about how Olympic winnings are taxed heading into the 2026 Winter Games.

The End of the “Victory Tax” for Most U.S. Olympians

For decades, Olympic medalists faced what critics called a “victory tax.” Under prior IRS rules, athletes were required to include both the fair market value of their medals and any cash bonuses as taxable income, even if the athlete earned little outside of sports.

That changed in 2016, when Congress passed the United States Appreciation for Olympians and Paralympians Act.

Under current federal law:

• Most U.S. Olympians do not pay federal income tax on:
  
  ○      Cash prize money awarded by the U.S. Olympic and Paralympic Committee (USOPC)
  
  ○      The fair market value of Olympic medals
  
  
• The exclusion applies only if the athlete’s Adjusted Gross Income (AGI) is $1 million or less
  
  
• For athletes married filing separately, the threshold drops to $500,000
  

This means the vast majority of Olympic athletes — particularly those outside major professional leagues — are no longer taxed federally for winning medals.

Who Still Pays Federal Tax on Olympic Winnings?

Not all Olympians qualify for the exemption.

High-earning athletes whose AGI exceeds $1 million, such as NBA players, NHL stars, or other elite professionals, must still include Olympic prize money and medal value as taxable income at the federal level.

In other words, the tax break is designed to protect athletes who rely on sport as their primary livelihood, NOT already-wealthy professionals like NBA star Lebron James and PGA player Rickie Fowler, who compete in the Olympics as part of broader careers.

It’s also important to note that the exemption applies only to official Olympic prize money and medal value, not everything an athlete earns.

Endorsements, Sponsorships, and Other Income Are Still Taxable

Even for athletes who qualify for the federal exemption, most Olympic-related income is still taxable.

This includes:

• Endorsement deals
  
  
• Sponsorship income
  
  
• Appearance fees
  
  
• Prize money from international federations
  
  
• Social media or commercial partnerships tied to Olympic exposure

For tax purposes, many athletes are treated as self-employed contractors, meaning they report income and expenses on Schedule C.

The upside? Athletes can deduct ordinary and necessary business expenses related to their sport, such as:

• Training and coaching
  
  
• Equipment
  
  
• Travel and lodging
  
  
• Agent and management fees
  
  
• Physical therapy and medical costs related to competition

How Much Is an Olympic Medal Actually “Worth”?

Despite popular belief, Olympic gold medals are not solid gold.

For the Milano–Cortina 2026 Winter Olympics, the estimated intrinsic metal value of medals (based on late-2025 metal prices) is approximately:

• Gold medal: ~$1,612
  (primarily silver, plated with about 6 grams of pure gold)
  
  
• Silver medal: ~$823
  (approximately 500 grams of pure silver)
  
  
• Bronze medal: ~$67
  (primarily copper alloy)

These figures represent raw metal value, not collector value or historical worth.

In reality, medals won by famous athletes can sell at auction for hundreds of thousands or even millions of dollars, depending on provenance and demand.

Operation Gold: Cash Bonuses for U.S. Medalists

U.S. athletes receive cash bonuses through Operation Gold, a program administered by the USOPC.

As of 2026, the standard payouts are:

• Gold: $37,500
  
  
• Silver: $22,500
  
  
• Bronze: $15,000

For most athletes under the income threshold, these bonuses are excluded from federal taxable income.

New Financial Benefits Starting in 2026

Beginning with the 2026 Winter Games, the USOPC is rolling out an additional long-term support program: the Stevens Financial Security Awards.

Under this program:

• Every U.S. Olympian and Paralympian earning under $1 million annually will receive $200,000 per Games, even if they do not medal
  
  
• The benefit includes:
  
  ○      A $100,000 grant, payable over four years starting at age 45 or 20 years after the Games
  
  ○      A $100,000 death benefit for beneficiaries

These benefits are designed to address the long-term financial instability many Olympians face after competition ends.

State Taxes: Where Things Get Complicated

While the federal exemption is clear, state tax treatment varies widely.

Some states follow the federal exclusion rules. Others do not.

For example:

• California does not fully conform to the federal exemption and may tax Olympic winnings
  
  
• Athletes may owe state income tax depending on residency, domicile rules, and where income is sourced

This means two athletes with identical Olympic success could face very different tax outcomes depending on where they live.

International Taxes and the Host Country Question

Olympic taxation doesn’t stop at U.S. borders.

Host countries often reserve the right to tax income earned within their jurisdiction — including Olympic-related compensation. For Paris 2024, France explicitly retained taxing rights over Olympic income.

For Milano–Cortina 2026, Italy has taken a more athlete-friendly approach.

Under Italy’s 2025 Budget Law:

• Italian athletes winning medals will receive prize money from CONI and CIP tax-free
  
  
• Non-resident athletes are also generally exempt from Italian taxation on Olympic income earned during the Games
  
  
• However, foreign athletes who are Italian tax residents may fall into a legislative gray area, potentially creating a loophole 

U.S. athletes should still review applicable tax treaties and consult advisors to avoid double taxation issues.

Why Olympic Tax Rules Matter

The tax treatment of Olympic income is an example of larger truths about the U.S. tax system:

• Income classification matters
  
  
• Residency and sourcing rules matter
  
  
• Tax relief is often targeted, not universal

For athletes, careful planning can mean the difference between keeping prize money or losing a portion to unexpected taxes.

And for everyday taxpayers watching the Olympics, it’s a reminder that behind every medal ceremony is a complex financial reality most viewers never see.

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