How Much Does the Winner of Survivor Get After Taxes?

The popular reality television series “Survivor” captivates audiences with its strategic gameplay and remote island settings. A significant draw for contestants is the substantial prize money awarded to the sole survivor at the end of each season. Many viewers wonder about the actual financial outcome for the winner. Understanding the tax implications of such a large windfall reveals the true take-home amount.

The Gross Prize and Its Taxable Nature

The winner of “Survivor” receives a gross prize of $1 million. This sum is taxable. The Internal Revenue Service (IRS) classifies prize money, including reality television winnings, as taxable income. The prize is treated like wages and must be reported on the winner’s annual income tax return.

Federal Income Tax on Winnings

Federal income tax applies to prize money as ordinary income. For a single filer in 2024, the highest federal marginal tax rate is 37%, which applies to taxable income exceeding $609,350. The United States employs a progressive tax system, where different portions of income are taxed at increasing rates. While the top marginal rate is 37%, the entire $1 million is not taxed at that rate. Instead, lower portions of the income fall into lower tax brackets, resulting in an effective tax rate that is lower than the marginal rate.

State and Local Income Tax Considerations

Beyond federal obligations, the winner’s state of residency significantly impacts the final tax bill. Nine states, including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, do not impose a state income tax. Other states have progressive income tax structures, with rates that can reach over 10%. For example, California’s top marginal rate can be as high as 13.3%, and New York’s can reach 10.9%. Some states utilize a flat tax rate, applying the same percentage to most income.

Calculating the Final Take-Home Amount

When a “Survivor” winner receives their prize, the production company withholds a portion for federal income taxes. Large gambling winnings, including sweepstakes like the “Survivor” prize, are subject to a mandatory 24% federal income tax withholding by the payer. This amount is remitted to the IRS and reported on Form W-2G. However, this 24% withholding is often insufficient to cover the full federal tax liability, especially for a $1 million prize that pushes the winner into the highest tax brackets. The winner will likely owe additional federal taxes when they file their annual return.

They may also need to make estimated tax payments throughout the year to cover remaining federal, state, and local income taxes. Due to these combined federal and state tax burdens, a “Survivor” winner can expect to take home between $500,000 and $650,000 after all taxes, depending on their individual income and state of residence. Consulting with a qualified tax professional is advisable for such a substantial financial gain.