For the second year in a row, Kyle Larson has won the High Limits International race at Perth, Australia. The NASCAR Cup Series driver for Hendrick Motorsports revisited the race in 2025. As if his grand victory against Denny Hamlin during the 2025 Cup Series wasn’t enough, Larson went forward and competed in Australia for a massive prize of AUD 110,000.

The High Limits International race is an open-to-all event in the sprint racing category, which attracts many drivers to test their skills. The Perth Motorplex was full of renowned drivers. Among them was Corey Day, who is the disciple of Kyle Larson. The 2025 NASCAR champion grabbed the lead from Buddy Kofoid. Throughout the race, Larson stuck to his lead, fending off attacks from both Corey Day and Rico Abreu. With that, Larson became the rightful winner of the massive AUD 110,000 bag of cash. But before you marvel at his prize, there’s a slight catch to it.

Australian Tax laws strip away a major chunk of Kyle Larson’s prize money

The Australian Tax Office mandates that, for international athletes earning in Australia, they need to pay taxes on every dollar earned. These include, but are not limited to, fees, prize money, performance earnings, and appearance payments for non-residents of the country.

As per the law, Kyle Larson’s prize will be taxed at 30% of his total income since it falls in the less than AUD 135,000 bracket. After paying AUD 33,000 to the tax office, Larson’s take-home prize money becomes AUD 77,000, which is approximately equal to USD 55-56,000 as per the current exchange rates. The prize issuing authority will deduct the necessary amount at source and pay it to the tax office before Larson receives it. Now, a big question arises—will Kyle Larson pay taxes again in the United States on his return?

The laws in the United States mandate that citizens report their income on a U.S. federal tax return. But the rules also allow any individual to pay foreign taxes on the amount they have earned. This credit reduces U.S. tax dollar-for-dollar by the amount of foreign tax paid on that same income, subject to rules. Additionally, if the tax liability in the U.S. is less than what they have already paid in the foreign country, it will fully cover their tax through the FTC. Hence, they will not need to pay taxes in the U.S. again.

Likely, Kyle Larson will not need to pay any extra taxes, since he has already paid taxes in Australia at a higher rate than in the United States. There is a provision for Foreign Earned Income Exclusion, but neither does it apply to prize money, nor does Kyle Larson qualify for the criteria of 330+ days in a foreign country.

For any fan wondering if this is it for Larson, they are totally mistaken.

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Kyle Larson gets ready for the Tulsa Shootout with other NASCAR veterans

Kyle Larson has just won the largest purse in Australian sprint racing history. But that’s simply not enough for him. He is on his way to Tulsa, Oklahoma. He and his kids are going to race together in the various divisions at Tulsa. The ‘off-season’ never really exists for Yung Money.

Kyle Busch and Ty Gibbs will join in to compete against Kyle Larson for the Tulsa Shootout. It also means a special rivalry is set to reignite between two different racers. Kyle Larson’s son, Owen, and Kyle Busch’s son, Brexton, are back. The last time Brexton won the Shootout in his category and got ahead of Owen. The atmosphere will already feel a little electric between the young ones.

After claiming a big purse, Larson has set his eyes on the famous “Golden Driller.” What are your thoughts regarding his chances of claiming the driller in Tulsa?