Gambling Winnings Tax Calculator
Created by: Emma Collins
Last updated:
Estimate federal and state tax on gambling and sports betting winnings for 2026 or 2025, including the new 90% limit on deducting losses and the 24% withholding.
Gambling Winnings Tax Calculator
FinanceEstimate the tax on casino, lottery and sports betting winnings, and whether your losses reduce it.
All winnings for the year, not just W-2G amounts
Documented losses for the same year
Wages, interest, retirement income
Mortgage interest, state taxes, charity. 0 if you don’t itemize
Form W-2G box 4; often 24% of large payouts
How gambling winnings are taxed
All gambling winnings are taxable income, added to your other income and taxed at your normal federal rate. Losses can offset winnings only on Schedule A if you itemize, and from 2026 only 90% of losses are deductible.
| 2025 | 2026 | |
|---|---|---|
| Deductible losses | 100% of losses, up to winnings | 90% of losses, up to winnings |
| W-2G for slots, bingo, keno | $1,200 or more | $2,000 or more |
| Regular withholding rate | 24% | 24% |
| Losses without itemizing | Not deductible | |
Examples for 2026
A single bettor with $60,000 of other income wins $10,000 and loses $8,000 over the year. They take the standard deduction, so the losses do not count: federal tax rises by $1,550, even though they are up only $2,000.
Another bettor wins and loses $10,000 but itemizes $20,000 of other deductions. Only $9,000 of losses is deductible, so $1,000 is taxed and federal tax rises by $120.
Lottery jackpots and related tools
For a big jackpot, compare lump sum and annuity in the lottery tax calculator, Powerball calculator or Mega Millions payout calculator. If withholding will not cover the tax, the IRS penalty and interest calculator shows the cost of paying late.
Frequently asked questions
How much tax do I pay on gambling winnings?
Gambling winnings are ordinary income, taxed at your federal bracket rate of 10% to 37% plus any state income tax. A single filer with $60,000 of other income who wins $10,000 owes about $1,550 more federal tax.
Can I deduct my gambling losses?
Only if you itemize deductions, and only up to the amount of your winnings. Starting in 2026, just 90% of losses count. If you take the standard deduction, losses do not reduce your tax at all.
What changed for gambling losses in 2026?
Losses are now limited to 90% of the amount lost. A gambler who wins $10,000 and loses $10,000 can deduct only $9,000, so $1,000 is taxed even though they broke even.
Are sports betting winnings taxed the same way?
Yes. Winnings from sportsbooks, online casinos, daily fantasy sports, poker and lotteries are all gambling income and must be reported whether or not you receive a Form W-2G.
When is tax withheld from gambling winnings?
Payers generally withhold 24% federal tax on winnings over $5,000 from lotteries, sweepstakes and wagering pools when the payout is at least 300 times the wager. Slot, bingo and keno winnings are not withheld unless you do not give a taxpayer ID, but they are reported on Form W-2G above the threshold.
When do I get a Form W-2G?
For 2026, slot machine, bingo and keno winnings of $2,000 or more trigger a W-2G (it was $1,200 for 2025). You must report all winnings even without one.