Major Victory Jackpot: "Taxes Are No Joke Either"

Harman's The Open Win Prize 3.8 Billion KRW, Actual Receipt 1.5 Billion KRW
Other Majors Vary by US Host Region
Federal Tax 37% Plus State Tax, 8 States Have No Income Tax

Winning a golf tournament is a 'jackpot.' Especially when reaching the top in a major tournament, the prize money is beyond imagination. It's like being hit by a 'money shower.' However, upon closer inspection, the amount credited to the bank account varies significantly due to hefty taxes.

Last week, Brian Harman (USA), who won the 151st Open Championship, the 'oldest major' (total prize money $16.5 million), became a topic of discussion. The actual amount he received was revealed to be less than expected. The winner's prize money for the Open was increased by $500,000 from last year to $3 million (approximately 3.8 billion KRW). It's an enormous sum. However, the actual amount the winner takes home was less than half. Due to UK tax laws, Harman took home $1.2 million (approximately 1.5 billion KRW).

Brian Harman won the major tournament The Open and received a huge prize, but he paid 60% in taxes to the UK alone.

In the UK, the basic income tax on the $3 million prize money is 20%. Additionally, if income exceeds ?150,000, there is an income tax rate of up to 45%. Depending on the duration the winner stayed in the UK, the actual amount received was only about 40% of the prize money.

Other major tournaments held in the United States also have significant taxes. Federal income tax must be paid unconditionally, ranging from a minimum of 10% to a maximum rate of 37%. Progressive tax rates apply depending on income brackets. Major tournament winners are subject to the highest tax rate. But it doesn't end there. There is also state income tax, which varies by state. Some states adopt progressive tax rates, others fixed rates.

The state with the highest state income tax is California, with a maximum rate of 13.3%. Hawaii (11%), New Jersey (10.75%), Oregon (9.9%), Minnesota (9.85%), District of Columbia (8.95%), New York (8.82%), and Arizona (8%) also impose relatively high taxes. North Carolina (5.25%), Massachusetts, Kentucky, and New Hampshire (all 5%) apply fixed tax rates.

There are also regions favored by winners. Eight states?Texas, Florida, Washington, Nevada, Tennessee, Wyoming, Alaska, and South Dakota?have no state income tax. Winners only pay federal tax on their prize money.

The first major tournament of the season, the Masters, was held in April at Augusta National in Georgia. The winner was Jon Rahm (Spain), with a prize of $3.24 million (approximately 4.1 billion KRW). Rahm paid 37% federal tax and 5.75% Georgia state tax. The actual amount received was $1,854,900 (approximately 238 million KRW).

At the second major, the PGA Championship held in New York in May, 'major hunter' Brooks Koepka (USA) claimed the title. The prize money was $3.15 million (approximately 4 billion KRW), and after deducting $1,443,330 in taxes, he received $1,706,670 (approximately 219 million KRW).

The third major, the US Open in June, was held in California, which imposes the highest taxes. Wyndham Clark (USA) took home $1,789,200 (approximately 229 million KRW) after taxes of $1,810,800 were deducted from the $3.6 million prize money (approximately 4.58 billion KRW).

This content was produced with the assistance of AI translation services.