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WinningsTax

Connecticut gambling winnings tax calculator

Connecticut taxes gambling winnings as ordinary income at graduated rates from 2% to 6.99%.

Updated · 2026 tax rules · How we calculate

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More options
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You keep

$7,950

Cash at payout

$7,600

Total tax

$2,050

Over-withheld

$350

Form W-2G
Yes

$10,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.

Federal withholding at payout
$2,400

The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.

Federal tax on the winnings
$1,550

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.

State tax
$500

Connecticut taxes gambling winnings as ordinary income.

Over-withheld
$350

More was withheld than these winnings add to your tax. The difference reduces what you owe on the rest of your return, or comes back as a refund.

You keep
$7,950

$10,000 minus $2,050 in federal and state tax: an effective rate of 20.5%.

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.

How Connecticut taxes gambling winnings

State income tax
Connecticut taxes gambling winnings as ordinary income at graduated rates from 2% to 6.99%.[1]
Gambling losses
No. Connecticut allows no deduction for gambling losses, even when you deduct them federally.[2]
Withholding
The CT Lottery withholds 6.99% from every reportable prize, for residents and nonresidents, even when no federal tax is withheld. In-state payers also withhold from residents' other winnings when federal withholding applies, at a rate we couldn't confirm.[3]Unverified
Nonresidents
Only Connecticut Lottery winnings. Casino, sports-betting and other gambling winnings are not Connecticut-source income for nonresidents.[4]
Tax paid to other states
No. Connecticut gives no credit for another state's tax on gambling winnings, except winnings from another state's government-run lottery.[2]
Legal gambling
Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: legal.[5]

Also worth knowing

  • A Connecticut resident taxed by another state on casino or sports winnings gets no Connecticut credit, so the same winnings can be taxed twice. Winnings from another state's lottery are the exception.[6]
  • The CT Lottery withholds 6.99% from every reportable prize even when no federal tax is withheld. That lets part-year movers avoid special accrual of annuity lottery payments while the withholding continues.[3]
  • By statute (C.G.S. 12-711), Connecticut Lottery winnings reported to the IRS are the only gambling income sourced to Connecticut for nonresidents. A 2002 law that sourced other in-state wagering was repealed the same year.[7]

Examples by game

For a single filer with $60,000 of other income and no gambling losses, living and winning in Connecticut.

GameWonWithheldFederal taxState taxYou keep
Sports betting$10,000$2,400$1,550$500$7,950
Casino and slots$5,000$0$600$225$4,175
Table games$5,000$0$600$225$4,175
Poker tournaments$20,000$0$3,750$1,050$15,200
Lottery$50,000$15,495$10,350$2,700$36,950
Daily fantasy sports$5,000$0$600$225$4,175
Horse racing$8,000$1,920$1,110$390$6,500

Questions

Does Connecticut tax gambling winnings?
Yes, at graduated rates from 2% to 6.99%.[1]
Can you deduct gambling losses in Connecticut?
No. Connecticut allows no deduction for gambling losses, even when you deduct them federally.[2]
Does Connecticut withhold tax from gambling winnings?
The CT Lottery withholds 6.99% from every reportable prize, for residents and nonresidents, even when no federal tax is withheld. In-state payers also withhold from residents' other winnings when federal withholding applies, at a rate we couldn't confirm.[3]Unverified
Do nonresidents pay Connecticut tax on gambling winnings?
Only Connecticut Lottery winnings. Casino, sports-betting and other gambling winnings are not Connecticut-source income for nonresidents.[4]

Connecticut by game

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] CT DRS IP 2011(27), Income Tax Treatment of Gambling Winnings Other Than State Lottery Winnings · checked September 22, 2026
  3. [3] CT DRS IP 2015(23), Income Tax Treatment of State Lottery Winnings · checked September 22, 2026
  4. [4] CT DRS - Nonresident and Part-Year Resident Tax Information · checked September 22, 2026
  5. [5] American Gaming Association, State of the States 2025 · checked September 22, 2026
  6. [6] CT DRS 2025 Form CT-1040 Instructions · checked September 22, 2026
  7. [7] C.G.S. Chapter 229, Income Tax · checked September 22, 2026