Daily fantasy sports winnings tax in Colorado
Colorado taxes daily fantasy winnings as ordinary income at a flat 4.4%.
Updated · 2026 tax rules · How we calculate
You keep
$4,180
Cash at payout
$5,000
Total tax
$820
Due when you file
$820
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $220
- Still to pay when you file
- $820
- You keep
- $4,180
Daily fantasy sites report net winnings of $2,000 or more for the year on a 1099-MISC.
Daily fantasy sports winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file. If you don't give the payer your Social Security number, 24% backup withholding applies.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 12% bracket.
Colorado taxes gambling winnings as ordinary income.
Tax owed ($820) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $820 in federal and state tax: an effective rate of 16.4%.
An estimate for 2026, not tax advice. It treats this win as your only gambling income for the year and leaves out local income taxes. Nothing you enter leaves your browser.
The rules
- Colorado tax
- Colorado taxes daily fantasy winnings as ordinary income at a flat 4.4%.[1]
- Federal tax form
- Daily fantasy sites generally report net winnings of $2,000 or more for the year on Form 1099-MISC, not a W-2G. The 1099-MISC threshold was $600 before 2026.[2]Unverified
- Federal withholding
- Fantasy sites don't withhold federal tax from winnings in practice.[2]Unverified
- Colorado withholding
- Colorado withholds 4% whenever federal tax is withheld.[3]
- Gambling losses
- Losses reduce Colorado tax only through your federal itemized deductions. Colorado has no separate gambling-loss deduction.[4]
- Visitors
- Colorado taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Colorado.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $66 | $1,254 |
| $2,000 | Yes | $0 | $240 | $88 | $1,672 |
| $5,000 | Yes | $0 | $600 | $220 | $4,180 |
| $10,000 | Yes | $0 | $1,550 | $440 | $8,010 |
| $100,000 | Yes | $0 | $22,114 | $4,400 | $73,486 |
Questions
- How much is Colorado tax on daily fantasy winnings?
- Colorado taxes daily fantasy winnings as ordinary income at a flat 4.4%.[1]
- Does Colorado withhold tax from daily fantasy winnings?
- Colorado withholds 4% whenever federal tax is withheld.[3]
- Do visitors pay Colorado tax on daily fantasy winnings?
- Colorado taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
More for Colorado
All of Colorado's gambling tax rules · Daily fantasy sports in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms 1099-MISC and 1099-NEC (2026) · checked September 22, 2026
- [3] Colorado DOR Withholding Tax Topics: Gambling Winnings · checked September 22, 2026
- [4] Colorado DOR Individual Income Tax Guide · checked September 22, 2026
- [5] Colorado DOR Income Tax Topics: Part-Year Residents & Nonresidents · checked September 22, 2026