FIFA Eyes US Federal Tax Exemptions for 2026 World Cup Teams

FIFA is moving toward a comprehensive agreement with the United States government to secure federal tax exemptions for the 48 teams participating in the 2026 World Cup. The move is intended to resolve a primary financial concern for national football associations ahead of the tournament.

Negotiations with US authorities, specifically involving the US Treasury, aim to ensure that participating nations are not subject to federal taxes on earnings and prizes during their stay in the country. While the progress in federal negotiations is seen as a significant step, the financial landscape for the teams remains complex due to the structure of the American tax system.

State and Local Tax Disparities

Despite the progress at the federal level, the tournament faces challenges with uneven state and city taxes. Because the US federal government cannot mandate tax exemptions at the state or municipal level, participating teams may still be subject to varying tax obligations depending on the specific cities and states where they play and reside.

This patchwork of local tax laws creates financial disparities between the participating nations. Larger, wealthier football associations are generally equipped to absorb these additional costs, but the burden is more significant for smaller associations with limited budgets.

Impact on Participating Nations

The 2026 World Cup will be the first to feature an expanded format of 48 teams, increasing the number of participants from the 32 teams that competed in the 2022 tournament. This expansion increases the number of associations that must navigate the US tax environment.

For smaller nations, the lack of a uniform tax exemption across all host jurisdictions could impact their ability to manage operational costs, player bonuses, and logistical expenses. The financial unpredictability associated with state-level taxes remains a point of contention as FIFA seeks to standardize the experience for all qualified teams.

Tournament Context

The 2026 tournament is being co-hosted by the United States, Canada, and Mexico. The scale of the event, involving multiple countries and dozens of host cities across North America, has necessitated complex diplomatic and financial coordination between FIFA and the respective national governments.

Tax exemptions are a standard request for FIFA during World Cup hosting negotiations, as the organization typically seeks to minimize the financial friction for national teams. The outcome of the current negotiations with the US Treasury will determine the baseline for federal obligations, while the remaining disparities will depend on the policies of individual US states and cities.