As the 2026 tournament approaches, FIFA has moved closer to solving one of the most significant financial issues facing participating nations, reaching an understanding with the United States Treasury that will allow all 48 teams to apply for exemption from federal taxes on their World Cup earnings. The development follows months of concern that expanded tournaments, held in the United States, Canada and Mexico, would place a disproportionate financial burden on national associations, particularly those without existing tax treaties with the United States. While the latest breakthrough addresses federal taxation, discussions are ongoing and many teams may still face state and city taxes, depending on where their matches are played.
Timeline of negotiations and how the issue emerged
The issue first became clear in April 2026, when reporting indicated that FIFA unable to secure comprehensive tax exemption For participating countries, despite having tax-exempt status in the United States since the 1994 World Cup. Under US law, income earned within the country is subject to taxation, meaning that national associations will be liable for federal, state and local taxes on prize money and commercial earnings generated during tournaments. At that stage, only 18 of the 48 eligible countries were protected through a double taxation agreement (DTA) with the United States. Those agreements, which have been largely negotiated by European countries with Canada, Mexico, Australia, Egypt, Morocco and South Africa, reduce or eliminate some tax liabilities. The remaining 30 countries, many of which were from small or emerging football economies, had no such protection and were expected to face significantly higher costs. Countries such as Curaçao and Cape Verde, both of whom are making their World Cup debut, were cited as examples of how the system can create inequalities, with smaller associations potentially facing a higher effective tax burden than wealthier European associations due to their tax status.
The Success of the Federal Tax Exemption and How It Works
On April 30, the day before the FIFA Council meeting in Vancouver, The Guardian reported Discussions involving the US Treasury and Donald Trump’s World Cup taskforce were expected to yield a commitment from FIFA that national associations would be able to apply for federal tax exemption under Section 501(c)(3) of the US Internal Revenue Code. According to the report, FIFA has been assured that if the organizations meet the necessary conditions, the application is likely to be successful. Operating as non-profit entities, not distributing profits to private shareholders, and refraining from political activity. National football associations are expected to meet these criteria.
FIFA President Gianni Infantino speaks during the 76th FIFA Congress in Vancouver, British Columbia on Thursday, April 30, 2026. (Ethan Cairns/The Canadian Press via AP)
If implemented as expected, the exemption would remove the most significant portion of the tax burden, bringing federal income tax rates in the United States to approximately 37% for individuals and approximately 21% for corporate entities.
State and city taxes still create unequal fiscal outcomes
Even with federal exemptions, the fiscal picture remains uneven because state and local taxes will still apply in many cases. Tax rates vary widely depending on location. Florida, which will host the matches in Miami, has no state income tax, while New Jersey, where the finals will be held at MetLife Stadium, can reach as high as 10.75%, and California, with matches in Los Angeles and San Francisco, has a rate as high as 13.3%. Because the United States will host 78 of the tournament’s 104 matches, including all matches through the quarterfinals, most teams will essentially play games within US jurisdictions where these taxes apply. Canada and Mexico, which will each host 13 matches, have already granted full tax exemptions to participating federations, creating a contradiction within the same tournament.
FIFA World Cup 2026 (via Getty Images)
The result is that a team’s final tax liability will depend not only on how much progress it makes but also on where its matches are scheduled, in what officials previously described as a “postcode lottery”.FIFA has declined to comment publicly on the negotiations, while sources cited by The Guardian say the situation is still ongoing. Yet the change represents a major shift from earlier expectations that teams could lose a large portion of their tournament income to federal taxation, while questions surrounding potential city and state taxes are also considered part of broader negotiations and have yet to be fully resolved.
Why does this issue matter to small and non-European countries?
The financial implications of the State of Origin were particularly significant for countries without DTAs, many of whom rely heavily on World Cup revenues to finance domestic football development. Earlier, FIFA increased the total prize and participation fund by 15%, taking it to $871 million (£645 million), with each of the 48 teams guaranteed at least $12.5 million. However, without the tax relief, a larger portion of that income would have been kept within the United States through taxation.
The FIFA World Cup trophy is displayed during the 76th FIFA Congress in Vancouver, British Columbia on Thursday, April 30, 2026. (Ethan Cairns/The Canadian Press via AP)
Concerns raised at the beginning of the year revealed that some unions could face losing more than 20% of their earnings, a figure that would have a disproportionate impact on smaller unions compared to wealthier European counterparts.
How is it different from previous World Cups?
In previous editions of the tournament, host governments have generally granted full tax exemptions to all participating teams, thereby ensuring a level playing field. The most recent example is the 2022 World Cup in Qatar, where all 32 national associations were exempted from local taxation on their earnings. That approach ensured that participation revenues flowed back into national football systems without deduction. The three-country hosting model of the 2026 tournament, coupled with the United States’ tax structure and treaty system, has created a more complex environment that FIFA is attempting to address through negotiations rather than automatic exemptions. With the tournament set to begin on June 11, when Mexico hosts South Africa in the opening match, resolving these outstanding details remains a priority for FIFA and the participating associations as preparations enter their final stages.
representationalistFrom the Iliad to the Mahabharata, women have often been wrongly portrayed as instigators of war. Atul Kumar’s Amba challenges this flawed notion and turns it upside down. Inspired by Aristophanes’ 5th-century BC comedy Lysistrata, this satirical play has been reimagined for a contemporary audience. While Lysistrata shows women coming together to end the decades-long Peloponnesian War between the city-states of Athens and Sparta in ancient Greece, Kumar’s adaptation leaves its time and place unspecified, keeping the play extremely relevant and universal.In both the original play and its adaptation, the women have agency and a strong voice, fully aware of gender power dynamics. To end the bloodshed and warmongering, they devise an unusual strategy: depriving their comrades of sexual intimacy until the men lay down their weapons and adopt a permanent peace. In doing so, the play explores complex themes, including masculine pride, male ego, and deep-rooted patriarchy. However, the 90-minute play maintains a light mood through playful, risqué dialogues presented in a mix of Hindi and Bundeli.Kamna Pathak as Amba is impressive and so are the rest of the cast. In addition to its subject matter, Amba also draws on the ‘old comedy’ tradition of Lysistrata, also known as Aristophanic comedy – a genre characterized by spirited criticism of public affairs through song, dance and buffoonery.The play’s white costumes and set design cleverly bring out the central message of peace. In the climactic scene, the stage is bathed in soft pink, achieved through effective lighting that subtly highlights the union of masculine and feminine energies, culminating in a final scene where the futility of war and the all-consuming power of love and passion resonate most deeply.Produced by D for Drama, Amba marked the beginning of the Meta Theater Festival at Kamani Auditorium, Delhi, running from 19 to 25 March.
