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The 90% gambling loss rule: what breaking even costs in every state

Starting with 2026 returns, gamblers can deduct only 90% of their losses. A year where you broke even now leaves 10% of your winnings taxed, and in some states all of them.

Updated · 2026 tax rules · How we calculate

$3,992

Federal tax on a year that broke even at $50,000

$1,100

of that is from the 90% rule. The rest comes from itemizing.

$7,216

Federal and state tax on the same year in Vermont, the most of any state

For a single filer with $60,000 of wages who won $50,000 and lost $50,000 betting on sports.

How the rule works

Until 2025, you could deduct gambling losses up to the amount you won. From 2026, only 90% of your losses count, still capped at your winnings, and only if you itemize.[87]

So someone who won $50,000 and lost $50,000 can deduct $45,000. The other $5,000 is taxed as income, even though they didn't come out ahead.

Itemizing has its own cost. Losses replace the $16,100 standard deduction for a single filer instead of adding to it.[90] Below about $17,889 of losses, 90% of them doesn't beat the standard deduction, so the losses save nothing and every dollar won is taxed. That was true at a lower line under the old rule too.

What the 90% rule adds, by amount

Federal tax on a break-even year for a single filer with $60,000 of wages.

Won and lostLeft taxable by the capFederal tax at 100%Federal tax at 90%Added by the rule
$10,000$1,000$1,550$1,550$0
$25,000$2,500$2,892$3,442$550
$50,000$5,000$2,892$3,992$1,100
$100,000$10,000$2,892$5,092$2,200
$250,000$25,000$2,892$8,392$5,500

At $10,000 the rule adds nothing: neither 90% nor 100% of the losses beats the standard deduction, so all of the winnings are taxed either way.

Every state

Tax owed for a single filer with $60,000 of wages who won $50,000 and lost $50,000 betting on sports, living in each state. Most owed first.

StateState loss deductionState taxFederal taxTotal owed
VermontNo deduction[1]$3,224$3,992$7,216
KansasNo deduction[3]$2,790$3,992$6,782
ConnecticutNo deduction[5]$2,700$3,992$6,692
South CarolinaNo deduction[6]$2,605$3,992$6,597
WisconsinNo deduction[8]$2,591$3,992$6,583
IllinoisNo deduction[9]$2,475$3,992$6,467
UtahLimited, 90%[10]$2,225$3,992$6,217
Rhode IslandNo deduction[11]$1,990$3,992$5,982
LouisianaNo deduction[12]$1,500$3,992$5,492
MississippiLimited, 90%[13]$1,500$3,992$5,492
IndianaNo deduction[15]$1,475$3,992$5,467
OhioNo deduction[16]$1,375$3,992$5,367
OregonOnly if you itemize, 90%[19]$438$3,992$4,430
HawaiiOnly if you itemize, 90%[22]$380$3,992$4,372
MinnesotaOnly if you itemize, 90%[23]$340$3,992$4,332
MaineOnly if you itemize, 90%[27]$338$3,992$4,330
District of ColumbiaOnly if you itemize, 90%[31]$325$3,992$4,317
DelawareOnly if you itemize, 90%[32]$296$3,992$4,288
VirginiaOnly if you itemize, 90%[33]$288$3,992$4,280
IdahoOnly if you itemize, 90%[37]$265$3,992$4,257
GeorgiaOnly if you itemize, 90%[38]$250$3,992$4,242
MontanaOnly if you itemize, 90%[40]$248$3,992$4,240
MarylandOnly if you itemize, 90%[41]$238$3,992$4,230
MissouriOnly if you itemize, 90%[44]$235$3,992$4,227
New MexicoOnly if you itemize, 90%[45]$235$3,992$4,227
NebraskaOnly if you itemize, 90%[46]$228$3,992$4,220
OklahomaOnly if you itemize, 90%[47]$225$3,992$4,217
ColoradoOnly if you itemize, 90%[50]$220$3,992$4,212
MichiganOnly if you itemize, 90%[51]$213$3,992$4,205
North CarolinaOnly if you itemize, 90%[52]$200$3,992$4,192
IowaOnly if you itemize, 90%[56]$190$3,992$4,182
KentuckyOnly if you itemize, 90%[57]$175$3,992$4,167
ArizonaOnly if you itemize, 90%[58]$125$3,992$4,117
North DakotaOnly if you itemize, 90%[61]$8$3,992$4,000
AlabamaOnly if you itemize, 100%[62]$0$3,992$3,992
AlaskaNo income tax[64]$0$3,992$3,992
ArkansasOnly if you itemize, 100%[65]$0$3,992$3,992
CaliforniaOnly if you itemize, 100%[68]$0$3,992$3,992
FloridaNo income tax[69]$0$3,992$3,992
MassachusettsLimited, 100%[70]$0$3,992$3,992
NevadaNo income tax[71]$0$3,992$3,992
New HampshireNo income tax[72]$0$3,992$3,992
New JerseyNetted against winnings, 100%[73]$0$3,992$3,992
New YorkOnly if you itemize, 100%[74]$0$3,992$3,992
PennsylvaniaNetted against winnings, 100%[78]$0$3,992$3,992
South DakotaNo income tax[79]$0$3,992$3,992
TennesseeNo income tax[80]$0$3,992$3,992
TexasNo income tax[81]$0$3,992$3,992
WashingtonNo income tax[82]$0$3,992$3,992
West VirginiaLimited, 100%[83]$0$3,992$3,992
WyomingNo income tax[86]$0$3,992$3,992

Assumes the losses are itemized on the state return wherever they are on the federal one, and leaves out local income taxes. Some states let you itemize separately; see the methodology.

Why states differ

Could the 100% deduction come back?

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.[92] Track the FULL HOUSE Act, updated daily from Congress.gov.

To see your own numbers, use the calculator with your losses filled in; “More options” can show the 100% figure. The guide to deducting losses covers what records you need.

Questions

What is the 90% rule for gambling losses?
For 2026 on, you can deduct 90% of gambling losses, and no more than your gambling winnings. Recreational gamblers only get the deduction by itemizing on Schedule A.[87]
If I broke even gambling, do I owe tax?
Usually, yes. Only 90% of losses are deductible, so 10% of your winnings stay taxable, and you have to itemize to deduct anything, which means giving up the $16,100 standard deduction (single). For a single filer with $60,000 of wages who won $50,000 and lost $50,000 betting on sports, that comes to $3,992 of federal tax.[87]
Is the 100% gambling loss deduction coming back?
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.[92]

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