Daily fantasy sports winnings tax in Connecticut
Connecticut taxes daily fantasy winnings as ordinary income at graduated rates from 2% to 6.99%.
Updated · 2026 tax rules · How we calculate
You keep
$4,175
Cash at payout
$5,000
Total tax
$825
Due when you file
$825
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $225
- Still to pay when you file
- $825
- You keep
- $4,175
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.
Connecticut taxes gambling winnings as ordinary income.
Tax owed ($825) 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 $825 in federal and state tax: an effective rate of 16.5%.
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.
The rules
- Connecticut tax
- Connecticut taxes daily fantasy winnings as ordinary income at graduated rates from 2% to 6.99%.[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
- Connecticut withholding
- No Connecticut withholding requirement for daily fantasy winnings. Tax is due when you file.[3]Unverified
- Gambling losses
- No. Connecticut allows no deduction for gambling losses, even when you deduct them federally.[4]
- Visitors
- Connecticut does not tax nonresidents on daily fantasy winnings. Visitors owe tax to their home state instead.[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 Connecticut.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $68 | $1,253 |
| $2,000 | Yes | $0 | $240 | $90 | $1,670 |
| $5,000 | Yes | $0 | $600 | $225 | $4,175 |
| $10,000 | Yes | $0 | $1,550 | $500 | $7,950 |
| $100,000 | Yes | $0 | $22,114 | $5,675 | $72,211 |
Questions
- How much is Connecticut tax on daily fantasy winnings?
- Connecticut taxes daily fantasy winnings as ordinary income at graduated rates from 2% to 6.99%.[1]
- Does Connecticut withhold tax from daily fantasy winnings?
- Connecticut has no withholding requirement for daily fantasy winnings. Tax is due when you file.[3]Unverified
- Do visitors pay Connecticut tax on daily fantasy winnings?
- Connecticut does not tax nonresidents on daily fantasy winnings. Visitors owe tax to their home state instead.[5]
More for Connecticut
All of Connecticut'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] CT DRS IP 2015(23), Income Tax Treatment of State Lottery Winnings · checked September 22, 2026
- [4] CT DRS IP 2011(27), Income Tax Treatment of Gambling Winnings Other Than State Lottery Winnings · checked September 22, 2026
- [5] CT DRS - Nonresident and Part-Year Resident Tax Information · checked September 22, 2026