Should Olympic Medals and Prize Money be Tax-Exempt?
Written by Jessika Vushaj
Every two years, Americans get together and watch athletes compete on the world stage. At the 2026 Winter Olympics, viewers will once again cheer again as team USA athletes dedicate their lives to representing our country. When these athletes stand on the podium and receive their medals, they are celebrated as national heroes. However, when coming back home, should they also receive a tax bill on what they won? Olympic medals and prize money should be fully tax-exempt because these athletes represent national service and not just any kind of employment. The financial reward from their victory is insignificant when compared to the years of sacrifice these athletes dedicate to representing their country, making tax exemption entirely justifiable.
Currently, American medalists receive bonus payments from the United States Olympic and Paralympic Committee. Gold medalists earn $37,500, silver medalists earn $22,500, and bronze medalists earn $15,000. In comparison, the average NFL player earns over $2 million per year. Unlike many professional athletes in major leagues, many Olympic athletes do not earn large salaries or endorsements. Many winter Olympians work second jobs or rely on sponsorship just to afford training costs.
For example, Chloe Kim reportedly earned around $500,000 to $1 million from major endorsement deals connected to Olympic marketing campaigns like her Michelob Ultra advertisement. While deals like this allow companies to use Olympic athletes in their branding to promote products, they also provide athletes with an important source of income outside of competition winnings.
Olympic athletes have some level of exemption from taxes, but it only applies under specific circumstances and therefore benefits a limited number of athletes. In 2016, Congress passed the United States Appreciation for Olympians and Paralympians Act, which was signed into law by Barack Obama. This law exempts almost all Olympic medal bonus payments from federal income taxes, but only for athletes who fall below a certain income level. But, this does not permanently guarantee protection for all Olympic athletes, and some states may still tax these bonuses.
One major reason Olympic prize money should be fully tax exempt is because representing the USA at the Olympics can be viewed as a form of national service. Athletes dedicate years of training and compete internationally on behalf of their country. Because they are representing the nation rather than a private team or league, their role serves a broader public purpose.
Additionally, the economic impact of exempting these bonuses is very small compared to the overall federal budget. Even if every U.S. medalist at the 2026 Winter Olympics won gold, the total payout would be not impactful compared to the government spending. The amount of tax money would barely make a difference nationally, but for an individual athlete, this money could help cover years of debt or future expenses. For context, an athlete who may earn under $30,000 annually while training, losing thousands of dollars to taxes could significantly affect their ability to afford coaching, equipment, travel, and medical care.
Advocates against potential tax exemptions say that income is income and should be taxed equally and that creating exemptions for certain people will complicate the tax system. Olympic athletes though are not earning money at a private competition but they are representing their country at an international event while having millions of viewers.
Overall, Olympic medals and prize money should be permanently and fully tax exempt at both federal and state levels. Lawmakers should solidify protections that ensure no Olympic athlete is penalized financially for representing their country. As the 2026 winter olympics have begun, Congress and state governments should reevaluate their commitment to supporting Team USA.
