Gambling winnings tax calculator
What gets withheld when you cash out, what you'll actually owe when you file, and what you keep. Every state, every game, 2026 rules.
Updated · 2026 tax rules · How we calculate
You keep
$7,910
Cash at payout
$6,510
Total tax
$2,090
Over-withheld
$1,400
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $540
- New York withholding at payout
- $1,090
- Over-withheld
- $1,400
- You keep
- $7,910
$10,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
New York taxes gambling winnings as ordinary income.
New York requires the payer to hold back 10.9% for state tax.
More was withheld than these winnings add to your tax. The difference reduces what you owe on the rest of your return, or comes back as a refund.
$10,000 minus $2,090 in federal and state tax: an effective rate of 20.9%.
An estimate for 2026, not tax advice. It treats this win as your only gambling income for the year and leaves out local income taxes. Nothing you enter leaves your browser.
What changed for 2026
- W-2G threshold is $2,000 for every game. It was $600 for sports bets and lotteries, $1,200 for slots and $1,500 for keno.[1]
- Only 90% of losses are deductible. A year where you broke even now leaves 10% of your winnings taxable, and you still have to itemize to deduct anything.[4]
- Withholding didn't change. It's still 24% on qualifying wins over $5,000.[1]
- No law has restored the 100% loss deduction. The FULL HOUSE Act (Title VII of H.R. 10357) would restore it back to 2026. House Ways and Means approved it on September 16, 2026; it still needs a House vote, the Senate and a signature.[8]
By game
By state
Rates, loss rules, withholding and nonresident rules for each state. Compare all states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Guides
- Form W-2G explained
What a W-2G is, the $2,000 threshold for 2026, the 300x rule, and what to do when you get one or don't.
- Withholding vs. tax owed on gambling winnings
Why the 24% taken at the window is rarely what you owe, and how to avoid a bill or penalty in April.
- Deducting gambling losses under the 90% rule
From 2026 only 90% of losses count, capped at winnings, and only if you itemize. What that means in dollars.
- Keeping gambling records the IRS will accept
The diary the IRS expects, the paperwork to keep with it, and why it matters more now that losses are capped.
- Professional vs. recreational gambler
How the IRS decides whether gambling is your business, and what changes on your return if it is.
- Gambling winnings from another state
When the state where you won taxes you, how your home state's credit works, and the states that break the pattern.
Questions
- Do I have to pay tax on gambling winnings?
- Yes. All gambling winnings are taxable income, including table games, cash poker games and wins too small for a tax form. You report them on your return whether or not you get a W-2G.[10]
- How much federal tax is withheld from gambling winnings?
- 24% of winnings over $5,000 for lotteries, and for sports bets and races that pay at least 300 times the wager. Slots, keno, bingo and poker tournaments have no regular withholding. Withholding is a prepayment: your actual tax depends on your bracket.[1]
- When do you get a W-2G in 2026?
- For payments made in 2026, the threshold is $2,000 for every game type, up from $600 to $1,500 before. Sports bets, races and lotteries also need the win to be at least 300 times the wager.[1]
- Can I deduct gambling losses in 2026?
- Only if you itemize, and only 90% of them, capped at your winnings. Someone who won $10,000 and lost $10,000 can deduct $9,000, so $1,000 stays taxable. Most people take the standard deduction and get no benefit from losses at all.[4]
- Has the 100% gambling loss deduction been restored?
- No law has restored the 100% loss deduction. The FULL HOUSE Act (Title VII of H.R. 10357) would restore it back to 2026. House Ways and Means approved it on September 16, 2026; it still needs a House vote, the Senate and a signature.[8]
Sources
- [1] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [2] 26 U.S. Code § 6041 (information returns) · checked September 22, 2026
- [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
- [4] 26 U.S. Code § 165(d) (wagering losses) · checked September 22, 2026
- [5] IRS, Publication 505 (2026), Tax Withholding and Estimated Tax · checked September 22, 2026
- [6] IRS, Topic 419, Gambling income and losses · checked September 22, 2026
- [7] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [8] Congress.gov, H.R. 10357 actions · checked September 22, 2026
- [9] H.R. 10357, Title VII (FULL HOUSE Act), as introduced · checked September 22, 2026
- [10] IRS, Publication 525, Taxable and Nontaxable Income · checked September 22, 2026
- [11] IRS Chief Counsel Advice 202042015 (fantasy sports) · checked September 22, 2026