Carlos Alcaraz celebrated a remarkable victory at the 2025 US Open, triumphing in front of an enthusiastic crowd at Arthur Ashe Stadium. The 22-year-old Spanish tennis star defeated Italy's Jannik Sinner with a score of 6-2, 3-6, 6-1, 6-4, securing his sixth Grand Slam title. For this achievement, Alcaraz was awarded a groundbreaking prize of $5 million, marking the highest payout ever for a singles champion at any Grand Slam event.
Despite the impressive prize, Alcaraz may only take home about half of that amount. The 2025 US Open garnered attention prior to its commencement due to a significant 20% increase in the total prize money pool, which rose from $75 million in 2024 to an astonishing $90 million this year. Both the men's and women's singles champions received $5 million, a notable increase from last year's $3.6 million.
However, a substantial portion of this prize will be claimed by U.S. tax authorities. Reports indicate that Alcaraz will fall into the highest federal income tax bracket, which stands at 37% for earnings exceeding $609,351. This tax alone will deduct approximately $1.7 million from his winnings.
In addition to federal taxes, New York state imposes a tax rate of 9.65% on income ranging from $1.08 million to $5 million, further reducing his earnings. After all deductions, Alcaraz's actual take-home pay could be around $2.5 million, significantly less than the initial prize amount.
Moreover, the expenses associated with competing in a Grand Slam, particularly in an expensive city like New York, can accumulate quickly. Costs for accommodation, meals for his team, physiotherapy sessions, travel, and coaching staff can total tens or even hundreds of thousands of dollars. Alcaraz also shares a portion of his prize money with his team, as is customary in professional tennis.
While losing nearly half of a $5 million prize may seem harsh, Alcaraz is unlikely to be overly concerned. At just 22, he is already making his mark in tennis history. This latest victory at the US Open adds to his impressive record, bringing his total Grand Slam titles to six and improving his head-to-head record against Sinner to 10-5.
Beyond being a Grand Slam champion, Alcaraz has become a global brand and one of the wealthiest young athletes. His income is bolstered by sponsorships, endorsements, and appearance fees, ensuring that his financial future remains bright despite the tax deductions.
