Gambling Tax Calculator
This calculator provides estimates for informational purposes only. It is not tax advice. Tax laws change frequently and individual circumstances vary. Consult a qualified tax professional for advice specific to your situation. Tax rates and rules reflect 2026 tax year. Last updated April 2026.
How To Use This Calculator
Calculate your exact federal and state tax on gambling winnings in four steps.
Choose your state and filing status. The calculator applies state-specific rates and loss deduction rules.
Enter your annual income before gambling. This determines your marginal federal tax bracket.
Enter your total gambling winnings and losses. The 2026 90% loss cap is applied automatically.
See your complete tax breakdown and check whether itemizing or the standard deduction saves you more.
Understanding the 2026 Gambling Tax Changes
Starting in 2026, the One Big Beautiful Bill Act limits the gambling loss deduction to 90% of total losses. Previously, 100% of losses were deductible (up to winnings). This creates 'phantom income' that is taxable even when you broke even.
The W-2G reporting threshold was raised from $600 to $2,000 for most gambling types (effective 2026). This means fewer W-2G forms will be issued, but you must still report all winnings.
Example: You won $10,000 and lost $10,000. You can only deduct $9,000 (90% of losses). The remaining $1,000 is phantom taxable income. At a 22% marginal rate, that is $220 in tax on zero actual profit.
State-by-State Gambling Tax Guide
Click any state to see its gambling tax rate, loss deduction rules, and special considerations. Rates are for tax year 2026.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Alaska has no state income tax. You only pay federal tax on gambling winnings.
Tax rate: 2.50% flat rate
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
California Lottery winnings are exempt from state income tax. CA adds a 1% Mental Health Services Tax on income above $1,000,000.
Tax rate: 4.40% flat rate
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: No, gambling losses are not deductible at the state level
Connecticut does not allow gambling loss deductions.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Florida has no state income tax. You only pay federal tax on gambling winnings.
Tax rate: 4.99% flat rate
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: 5.30% flat rate
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: 4.95% flat rate
Loss deduction: No, gambling losses are not deductible at the state level
Illinois does not allow gambling loss deductions at the state level.
Tax rate: 2.95% flat rate
Loss deduction: No, gambling losses are not deductible at the state level
Indiana has a flat 2.95% state rate plus county income tax. County rates vary; select your county of residence.
This state has local/county taxes that may apply.
Tax rate: 3.80% flat rate
Loss deduction: Yes, gambling losses are deductible when itemizing
Iowa moved to a flat 3.8% rate starting in 2025.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: No, gambling losses are not deductible at the state level
Kansas does not allow gambling loss deductions.
Tax rate: 3.50% flat rate
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: 3.00% flat rate
Loss deduction: Yes, gambling losses are deductible when itemizing
Louisiana reduced to a flat 3% rate starting in 2025.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Maryland also levies a local income tax (county/city). Rates vary by county; select your county.
This state has local/county taxes that may apply.
Tax rate: 5.00% flat rate
Loss deduction: No, gambling losses are not deductible at the state level
Massachusetts allows a limited deduction for losses at MA-licensed casinos and racetracks only. Online sportsbook losses are not deductible.
Massachusetts adds a 4% surtax on income above $1,083,150 (2026). Gambling losses are not deductible.
Tax rate: 4.25% flat rate
Loss deduction: Yes, gambling losses are deductible when itemizing
Michigan allows gambling loss deductions only for losses at Michigan casinos. Online sportsbook losses may not qualify.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: 4.00% flat rate
Loss deduction: Yes, gambling losses are deductible when itemizing
Mississippi taxes income above $10,000 at a flat 4%. Income up to $10,000 is exempt.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Nevada has no state income tax. You only pay federal tax on gambling winnings.
New Hampshire has no state income tax. You only pay federal tax on gambling winnings.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
New York City and Yonkers residents pay additional local income tax. Select your city above.
This state has local/county taxes that may apply.
Tax rate: 3.99% flat rate
Loss deduction: No, gambling losses are not deductible at the state level
North Carolina does not allow gambling loss deductions.
Tax rate: 1.95% flat rate
Loss deduction: Yes, gambling losses are deductible when itemizing
North Dakota applies its 1.95% flat rate only to income above $44,725 (single) / $74,750 (MFJ) for 2025/2026.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: No, gambling losses are not deductible at the state level
Ohio does not allow gambling loss deductions. Income under $26,050 is exempt from Ohio income tax.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: 3.07% flat rate
Loss deduction: No, gambling losses are not deductible at the state level
Pennsylvania allows only the cost of wagers (not all losses) to be deducted. Effectively very limited deduction.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: No, gambling losses are not deductible at the state level
Rhode Island does not allow gambling loss deductions.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
South Dakota has no state income tax. You only pay federal tax on gambling winnings.
Tennessee has no state income tax. You only pay federal tax on gambling winnings.
Texas has no state income tax. You only pay federal tax on gambling winnings.
Tax rate: 4.65% flat rate
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: No, gambling losses are not deductible at the state level
Vermont does not allow gambling loss deductions.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Washington has no state income tax. You only pay federal tax on gambling winnings.
Tax rate: Progressive brackets (see calculator above)
Loss deduction: Yes, gambling losses are deductible when itemizing
Tax rate: Progressive brackets (see calculator above)
Loss deduction: No, gambling losses are not deductible at the state level
Wisconsin does not allow gambling loss deductions.
Wyoming has no state income tax. You only pay federal tax on gambling winnings.
Common Mistakes to Avoid
You must report all gambling winnings, even without a W-2G. The IRS can match deposits and withdrawals from sportsbooks.
With the 90% cap, losses never fully cancel winnings. Plus, you must itemize to deduct losses at all, and 11 states don't allow loss deductions.
Gambling losses are an itemized deduction. If you take the standard deduction, you get zero benefit from your losses.
Frequently Asked Questions
Do I have to pay taxes on sports betting winnings?
Yes. All gambling winnings are taxable income. Nine states have no state income tax, but federal tax always applies.
Can I deduct my gambling losses?
Only if you itemize deductions. The 2026 90% cap limits your deduction, and 11 states don't allow gambling loss deductions at all.
What is the 90% gambling loss deduction cap?
Starting in 2026, only 90% of your gambling losses are deductible. This creates 'phantom income' on the non-deductible 10%.
Which states don't tax gambling winnings?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax.
What if I broke even but still owe taxes?
Common due to the 90% federal cap and states that don't allow loss deductions. Use this calculator to see the exact impact.
Do I need to report without a W-2G?
Yes. The W-2G threshold only affects payer reporting, not your obligation. Report all winnings on your tax return.
Pro Tip
Keep detailed records of every bet: date, type, amount wagered, and result. Use Bet Hero's bet tracker to automatically log your activity. Good records are essential for claiming loss deductions and surviving an IRS audit.