Anthony Joshua’s massive payday from his fight against Jake Paul in the United States is set to be heavily reduced by taxes, despite reports that he earned around $92 million from the event.
The bout, held in Miami, ended in dominant fashion when Joshua landed a decisive right hand in the sixth round after Paul had taken sustained punishment.
The heavyweight exhibition generated a total prize pool of about $184 million, split evenly between the two fighters, making it the most lucrative contest of Joshua’s career.
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However, because the fight took place in the US, Joshua is expected to face significant tax obligations across multiple jurisdictions. Reports indicate that the US federal government will tax his earnings at the top income rate of 37 per cent, which would amount to roughly $52 million.
On top of that, Joshua is also expected to pay taxes back in the United Kingdom. This includes an estimated $11.3 million to His Majesty’s Revenue and Customs, as well as around $2.8 million in National Insurance contributions.
In total, Joshua is projected to lose approximately $66 million to taxes, leaving him with about $74 million from the overall purse. While Florida does not charge a state income tax, federal US taxes still apply to earnings made within the country.
By contrast, Jake Paul is only expected to pay US federal taxes on his share of the purse. As a result, despite both fighters earning the same amount from the bout, Paul is likely to take home more money than Nigerian boxer after taxes are deducted.
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