FIFA World Cup tax exemption plan advances as officials negotiate relief for 2026 finalists, easing costs ahead of expanded tournament in the US

The Fédération Internationale de Football Association FIFA has moved closer to securing a federal tax exemption arrangement for teams competing in the expanded 2026 FIFA World Cup, following discussions with United States officials aimed at reducing financial burdens on participating nations.

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After a FIFA Council meeting, the governing body confirmed that qualified member associations may apply for exemption under section 501(c)(3) of the US Internal Revenue Code, a provision typically reserved for charitable organisations.

However, FIFA clarified that the 48 participating teams will still be liable for state and city taxes, meaning the relief will not fully eliminate tax obligations during the tournament.

Officials have remained cautious about further details, though member associations across Europe were reportedly briefed on the proposed framework earlier in the week.

Several football federations have expressed concern that the structure of the exemption is complex and could be influenced by their own legal and financial arrangements in their home countries.

The development follows complaints during last year’s Club World Cup in the United States, where some clubs faced combined federal, state and local taxation that significantly reduced their earnings.

The proposed tax arrangement is expected to be welcomed by national teams preparing for the tournament, many of which have raised concerns about rising participation costs, including travel, accommodation and training logistics.

FIFA has also indicated plans to increase both prize money and preparation funding for the 48-team competition, aiming to ease financial pressure on participating nations.

Co-hosts Canada and Mexico have already granted tax exemptions for qualified teams, while discussions continue in the United States regarding full host-city agreements.

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The issue has also affected planning for future tournaments, including the 2031 Women’s World Cup bid process, where delays in securing tax-related agreements have pushed final hosting approval further down the calendar.