Tens of thousands of runners compete in the Boston Marathon in April. Each filled with dreams of crossing the finish line in first place come with more than just glory — they come with a significant tax bill.
According to a breakdown by the Massachusetts Opportunity Alliance (MOA), elite runners who snag top prizes in this historic race will face a steep reduction in their winnings due to a double tax hit — from both federal and Massachusetts state income taxes.
The Cost of Victory
The first-place male and female winners are each set to receive $150,000 in prize money. However, after accounting for federal taxes and Massachusetts state income tax — which applies even to non-residents — the take-home pay shrinks to just over $100,000. That represents a loss of nearly 32% of the total winnings.
Second-place prize money, which totals $75,000, will be reduced to $53,960 after taxes. Third place, offering a $40,000 prize, leaves runners with about $30,370 in net earnings.
Massachusetts Taxes Non-Resident Winners
While federal taxes are expected on income regardless of a person’s home state or country, what might come as a surprise to some athletes is Massachusetts’ decision to also tax prize earnings for non-residents. Because the income is “earned” within the Commonwealth, the state views it as taxable, even if the recipient lives elsewhere.
“There’s no outrunning taxes,” said a spokesperson from MOA. “Even the fastest athletes can’t sprint past the IRS — or the Massachusetts Department of Revenue.”
After the Finish Line: Financial Implications
The Boston Marathon remains one of the most prestigious and competitive races in the world, drawing elite athletes from across the globe. Yet these financial figures underscore a harsh reality for winners: their hard-earned prize money is immediately subject to significant deductions.
While the race is a celebration of human endurance and achievement, it’s also a reminder that in the world of competitive sports — even triumph is taxed.