How much do Olympic medallists earn? Are their winnings exempted from tax?

The Olympic Games are over and athletes have returned home from Paris with experiences worth a lifetime. For some lucky few, it’s beyond just experiences, though. They win a medal, a stuffed toy of the Olympic mascot and a “mysterious” box containing the official event poster. And that’s not all. While the International Olympic Committee does not award medallists with prize money, most countries reward their winners with financial bonuses and more.

Think India’s Manu Bhaker — who made the country proud with her two bronze medals in shooting — Neeraj Chopra with his silver in the javelin, Sarabjot Singh with his bronze in shooting, Swapnil Kusale with another bronze in shooting, the men’s hockey team’s bronze and Aman Sehrawat with his bronze in wrestling.

More from Explainers

How ChatGPT is becoming everyone’s BFF and why that’s dangerous This Week in Explainers: How recovering from Gen-Z protests is a Himalayan task for Nepal

These Olympic winners have been handed out attractive financial bonuses for making India proud on the global stage. And it’s not just Indian athletes. World over, Olympic medallists have been given hefty financial awards for their success.

The question that many are then asking is: how much do sports persons earn for winning a medal and is that winning then taxed?

Indian Olympians’ cash haul

In India, the government has announced prize money for the winning athletes. Manu Bhaker, who made history in India for being the only one to win two medals in a single Olympic Games, has been awarded a cash prize of Rs 30 lakh from Sports Minister Mansukh Mandaviya. In addition, she will also receive Rs 5 crore from the Haryana government for her wins.

Impact Shorts

More Shorts

Ghaziabad woman dead, pilgrims attacked in bus… How Nepal’s Gen-Z protests turned into a living hell for Indian tourists

Were bodyguards involved in Charlie Kirk’s shooting? The many conspiracies surrounding the killing

For Swapnil Kusale , who became the first Indian to win in the men’s 50m Rifle 3 Positions event, the Maharashtra government has announced a Rs 1 crore prize. He’s also been honoured with an appointment as an officer on special duty at Central Railways.

Sarabjot Singh, who won a medal with Bhaker, has also received a cash cheque of Rs 22.5 lakh, while the Haryana government will also give him Rs 2.5 crore. The men’s hockey team that clinched a bronze after defeating Spain will receive Rs 15 lakh from Hockey India whereas each support staff member will get Rs 7.5 lakh. Mohan Charan Manjhi, the Odisha chief minister, has announced that defender Amit Rohidas will get Rs 4 crore, whereas other players will get Rs 15 lakh and the support staff will get Rs 10 lakh. Punjab Chief Minister Bhagwant Mann has also announced Rs 1 crore cash prize for every hockey player who hails from the state.

And for India’s silver boy — Neeraj Chopra — while no official announcement has been made, the javelin thrower is expected to receive multiple cash prizes. After he won gold at the Tokyo Olympics in 2021, Neeraj received a cash prize of Rs 6 crore from the Haryana government.

Countries spending big on Olympic winners

But it’s not just India awarding their winners with attractive bonuses. The US Olympic & Paralympic Committee will give each of their winning athletes — the nation won a whopping 126 medals in Paris — bonuses. Gold medallists will earn $38,000, while silver and bronze medallists will be given $23,000 and $15,000. The total payout, according to a Forbes report, is a whopping $8.3 million.

However, the US winners aren’t the most-paid athletes. That honour goes to Hong Kong and Singapore, as they offer the highest payouts for their Olympic victors. Gold medallists will receive 6 million Hong Kong dollars ($768,000), Hong Kong’s chief secretary for administration, Chan Kwok-ki, announced early July. Silver and bronze medallists stand to earn HK$3 million and HK$1.5 million, respectively.

Singapore also gives its Olympic medallists 1 million Singapore dollars ($745,300) for gold, SG$500,000 for silver and SG$250,000 for bronze. Other countries are also shelling out huge sums to their winners — Israel, Malaysia, Kazakhstan, Indonesia, and Italy are all handing out six-figure sums to their winning athletes.

Olympic host nation, France, has also bumped up its cash incentives. Gold medallists will receive $87,000, while those winning silver and bronze will be given $43,000 and $22,000 respectively. A CNBC report states that this is much higher than what was offered at the Tokyo Olympics.

Pakistan has also given Arshad Nadeem , its sole winner, Pak Rs 10 million  ($119,000) and a brand new car for his historic gold in the javelin event.

South Korea offers a combination of prize money and lifelong pensions. Gold medallists receive 63 million Korean won ($43,288) and can choose between a lifelong monthly pension of a million won or a lump sum of 67.2 million won. Silver and bronze medallists earn 35 million and 25 million won, respectively.

Cars, cows and apartments

In some countries, often in addition to cash, lavish rewards are bequeathed upon winning athletes, from luxury cars to apartments. Malaysia has promised their athletes foreign-made cars if they bring home medals from Paris, while in Kazakhstan, Olympic winners are legally entitled to apartments—the size of which will differ according to their medal colour.

Polish Olympic medallists, such as tennis star Iga Swiatek, will receive a painting, a holiday voucher, a scholarship and a diamond. Hong Kong and the Philippines will provide discounts on transportation to their winning sportspersons.

But sometimes, countries show their appreciation with the weirdest of awards. For their win at the Tokyo Olympics, badminton gold medallists Greysia Polii and Apriyani Rahayu were given five cows, a meatball restaurant, and a new house.

To tax or not to tax

With Olympic medallists being awarded such hefty prize money, the next question that many may be wondering is if athletes are taxed on these awards.

In India, winners — Manu Bhaker, Neeraj Chopra, Sarabjot Singh, Swapnil Kusale, men’s hockey team’s bronze and Aman Sehrawat — needn’t worry as cash or gifts from the government are tax-free. As per Central Board of Direct Taxes (CBDT) rewards from the central or state governments to the Olympics, Commonwealth or Asian Games medallists are exempt under Section 10 (17A) of Income-Tax (I-T) Act.

Even past Olympic winners such as Abhinav Bindra, PV Sindhu and others haven’t been taxed for the prize money they have received.

Neighbouring Pakistan also has followed suit, with the Federal Board of Revenue (FBR) stating that the prize money that Nadeem has been bequeathed will be exempt from tax. Bakhtiar Muhammad, the official spokesperson of FBR, was quoted as telling The Express Tribune, “There will be no tax on the prize money given to Arshad Nadeem. The income or withholding tax does not apply to such awards.”

“Arshad Nadeem is a national hero, and we will extend all possible support to him,” Bakhtiar added.

US athletes such as gymnast Simone Biles , swimmer Katie Ledecky and many more, will also be smiling big as the cash prize that they receive will be exempted from tax. Notably, this wasn’t always the case. Prior to 2016, all Olympic medals and related prizes earned by US taxpayers, including bonuses, were taxed as income for federal purposes.

However, after failed attempts, the United States Appreciation for Olympians and Paralympians Act was passed, with then-President Barack Obama signing it into law, excluding athletes who bring home the gold, silver, or bronze for Team USA from having to pay the taxman anything on their winnings.

But, there is an exception to this law: Athletes with adjusted gross income (AGI) of $1 million or more ($500,000 for those married individuals filing separately) don’t qualify for the exemption.

In Brazil, President Luiz Inacio Lula da Silva issued an executive measure amid the Games, exempting Olympic and Paralympic medallists from income tax on their prize money. The tax exemption applies to prize winnings awarded by both the Brazilian Olympic Committee (COB) and the Brazilian Paralympic Committee (CPB) at the Paris Games.

This means gymnast Rebeca Andrade, who won a gold, beating Simone Biles in the floor exercise final, and other winners won’t have to pay tax on any winnings they receive for their triumph in Paris.

However, in France, it’s a bit different. The 64 medallists at the Games, who will earn a total of $9.4 million, will have to pay tax on their prize money. The Emmanuel Macron-led country has retained the right to tax all athlete income directly related to the Olympics. As per the law, France’s tax will apply to payments from national associations, sponsors and others, such as for living expenses and bonuses.

Similarly, Canada also taxes its Olympic winners. That’s because the Canada Revenue Agency, Canada’s tax man, doesn’t deem Olympic awards “prescribed prizes,” which are tax-free. Such prizes include lottery winnings and awards like the Nobel Peace Prize.

Jeff Steinberg, partner with the sports and entertainment group of Crowe Soberman LLP told advisor.ca that there “aren’t a lot of medal award winners in Canada. Coming up with a special exemption for say, 100 people doesn’t make sense”. He added that this issue makes headlines each time the Games are played. But it dies as soon as it’s over.

With inputs from agencies