Tennessee 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 Tennessee
Tennessee has no state income tax on wages or gambling winnings, so a Tennessee bettor owes federal tax and nothing else. The state finished dismantling its income tax when the Hall tax on investment income was eliminated in 2021, and nothing replaced it for gambling income.
Tennessee at a glance
Tennessee eliminated the Hall income tax on investment income in 2021.
The last piece of the income tax went in 2021
Tennessee taxed investment income under the Hall tax until 2021, which is why older guides still hedge about Tennessee residency. They are out of date. For the 2026 tax year the state collects nothing on gambling winnings, wages or investment income, and there is no Tennessee return line for a sportsbook W-2G to land on. What is left is the federal treatment, and the part that catches Tennessee bettors is the 90% cap: a bettor who won $80,000 and lost $80,000 can deduct at most $72,000, leaving $8,000 of winnings taxed at their federal marginal rate after a break-even year.
Tennessee gambling tax FAQ
Does Tennessee tax sports betting winnings?
No. There is no state income tax on gambling winnings, so the state line in the calculator stays at zero.
Does the Hall tax still apply to anything?
No. It was eliminated in 2021 and covered investment income rather than gambling winnings in any case.
Betting outside Tennessee?
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.
Back to the gambling tax calculator