Carlos Alcaraz Instantly Loses Large Amount of Record US Open Prize Money

Carlos Alcaraz and Jannik Sinner met again in yet another final when they battled it out for the US Open, where a record pay-out was up for grabs.

The 145th edition of the New York tournament has the most lucrative prize pool in history, with a purse increase of $15 million taking it to a whopping $90 million.

The prize money for winning both the men and women's tournaments was set at $5 million, with the runner up in each final pocketing $2.5 million.

With president Donald Trump in attendance, Alcaraz and Sinner squared off on US soil yet again just weeks after the tournament holder had to retire just 23 minutes into the final of the Cincinnati Open after struggling with illness.

A return to action for Sinner meant the pair played out their 15th overall encounter in an utterly dominant era in tennis, having also met in the French Open and Wimbledon finals.

Alcaraz and Sinner met in yet another final. Image: Getty

The duo served up another all-time classic on the big stage and it was Alcaraz who prevailed 6-2 3-6 6-1 6-4 - for a 10th victory over his rival to collect his sixth Grand Slam and climb above him into the coveted No.1 spot in the ATP world rankings.

How much prize money will Alcaraz receive?

But despite prize money being increased by a whopping 38.89%, two-time US Open winner Alcaraz will still lose a good portion of his pay packet.

Because he is a non-resident alien, Alcaraz is required to pay federal tax on income earned in the US - with that figure typically around 30% on the gross amount for US-sourced income unless a tax treaty or Central Withholding Agreement (CWA) applies.

That amount equates to around $1.5 million to bring the total to $3.5 million but on top of that there is also state income tax applied in New York, which means the tax rate could be as high as 37% to leave Alcaraz with an estimated $3,150,000 when all is said and done.

Alcaraz still resides in Murcia with his family and he is still technically forced to pay state and regional personal income to the Murcia government - though there is a US-Spain tax treaty which can stop double taxation on earnings.

Sinner doesn't have that issue, however, as the Italian lives in tax-free Monaco.