Nelly Korda won $2.5 million at the U.S. Women’s Open, but taxes could cut over $1 million from her historic Riviera payday, recognized as the largest in women’s major golf history
Nelly Korda will see a portion of her $2.5 million payday swallowed by US taxes
Nelly Korda’s 81st U.S. Women’s Open at Riviera Country Club sealed her second consecutive major victory, a $2.5 million winner’s check for the single biggest payout in women’s golf history, and the harsh reminder that part of the funds were drained before they could be used.
Korda won the LPGA Tour event on Sunday by holding off Charley Hull and Gaby Lopez by one shot with a 2-and-a-half-foot par putt that nervously curled around the cup before dropping. She finished at 8-under after rounds of 73, 67, 67, and 69 for a total of 276 and wiped away tears after the scary finish.
Hull and Lopez tied for second at 7-under, while In Gee Chun finished fourth at 6-under and Sei Young Kim rounded out the top five at 5-under. Meanwhile, J.T. Poston’s wife fought back tears after he cashed out for winning the Memorial Tournament.
“I feel like I’m in a dream,” Korda said during her post-tournament interview. “I just can’t even explain how much this means to me with all of you here cheering me on.”
The victory is one of the biggest paydays in women’s golf, but Korda will not keep anything close to the full amount. Since the tournament was held in California, her prize money is treated as California source income even though she is a Florida resident.
Her dream also involves the harsh mathematical estimations of the federal income tax on a $2.5 million prize, which is roughly $925,000. The figure represents whether Korda is taxed at the highest rate before deductions, expenses, or planning.
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The top-ranked women’s star could help reduce the tax rate by deducting expenses such as fees, caddie cuts, travel, and more. California can also tax income earned within the state.
An estimate of nonresident tax on the Riviera winnings is around $300,000, bringing the total projected tax to about $1.2 million to $1.25 million. Florida’s lack of a state income tax helps Korda sidestep extra home-state taxes.
Her trusted caddie Jason McDede has been by her side since the 2018 LPGA season. Several financial estimates have projected McDede’s net worth to be between $1 and $2 million.
Nelly Korda and Jason McDede have worked together since 2018
After taxes at both the federal and California levels, her net income could drop to approximately $1.25 million to $1.3 million. A professional golfer earning $2.5 million at Riviera can expect to retain roughly 50 to 55 percent of the prize after taxes.
Korda’s $2.5 million victory check marks a notable rise on the LPGA’s all-time earnings list, as reported by Spotrac. She accumulated $12.5 million in official LPGA prize money to place her 18th in tour history before the victory.
The win pushes her closer to just outside the top 10 behind Lexi Thompson ($14.5 million) and Lorena Ochoa ($14.8 million) on the all-time earnings leaderboard. Annika Sorenstam remains the LPGA’s career money leader at $22.5 million.