Massachusetts 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.
Gambling tax in Massachusetts
Massachusetts charges a flat 5% on gambling winnings and runs its own loss rule rather than the federal one. Losses at Massachusetts-licensed sportsbooks, casinos and racetracks come off winnings from those same operators, with no federal itemizing and no 90% cap. Losses anywhere else, offshore books and other states included, do not count.
Massachusetts at a glance
Massachusetts adds a 4% surtax on income above $1,083,150 (2026).
Massachusetts deducts losses at MA-licensed sportsbooks, casinos and racetracks, up to your winnings from those same operators. It does not need federal itemizing and has no 90% cap. Losses at offshore or out-of-state books and on the Mass Lottery do not count.
A millionaire surtax a good season can trigger
Above $1,083,150 of income Massachusetts adds a 4% surtax, taking the marginal rate to 9%. That threshold looks remote until a big season lands on top of a salary. Losses at MA-licensed operators come off before the surtax test, but losses at books Massachusetts does not license do not, so a bettor with $200,000 of salary who won $1,000,000 offshore is over the line on the winning column alone, whatever the losing column says. The calculator models the surtax by stacking gambling income on your other income and charging 4% only on the slice that crosses the threshold, so you can see how much of a big season lands in surtax territory.
Massachusetts gambling tax FAQ
Can I deduct online sportsbook losses in Massachusetts?
Yes, if the bets were with a sportsbook licensed in Massachusetts, and only up to your winnings from Massachusetts-licensed operators. Turn on the MA-licensed toggle in the calculator to apply it.
When does the 4% surtax start applying?
Once your total income, including gambling winnings less any losses at MA-licensed operators, passes $1,083,150. Only the portion above that threshold is surtaxed.
Betting outside Massachusetts?
The main gambling tax calculator covers all 51 US jurisdictions, with the same federal brackets, the 90% loss deduction cap and the standard versus itemized comparison.
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