Delaware gambling winnings tax calculator
Delaware taxes gambling winnings as ordinary income at graduated rates from 0% to 6.6%.
Updated · 2026 tax rules · How we calculate
You keep
$7,824
Cash at payout
$7,600
Total tax
$2,176
Over-withheld
$224
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $626
- Over-withheld
- $224
- You keep
- $7,824
$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.
The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
Delaware taxes gambling winnings as ordinary income.
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.
$10,000 minus $2,176 in federal and state tax: an effective rate of 21.8%.
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 Delaware taxes gambling winnings
- State income tax
- Delaware taxes gambling winnings as ordinary income at graduated rates from 0% to 6.6%.[1]
- Gambling losses
- You can deduct losses as a Delaware itemized deduction on Form PIT-RSA, even if you took the federal standard deduction.[2]
- Withholding
- We found no Delaware requirement for the Lottery, casinos or sportsbooks to withhold state tax, so any Delaware tax is due when you file.[3]Unverified
- Nonresidents
- Partly. The statute expressly sources only pari-mutuel (horse racing) winnings to Delaware for nonresidents, though the PIT-NON instructions ask for all gambling winnings from Delaware sources.[4]Unverified
- Tax paid to other states
- Yes. Residents get a credit for income tax paid to another state on income from sources there, with the other state's return attached.[2]
- Legal gambling
- Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: legal.[5]
Also worth knowing
- Delaware lets residents itemize, and so deduct gambling losses, on the state return even if they took the federal standard deduction.[2]
- Delaware adopts federal itemized deductions on a rolling basis ('as the same are or shall become effective'), so the 2026 federal 90% loss limit applies to Delaware itemizers.[6]
- Delaware's casino games run legally as state 'video lottery', table games and 'sports lottery' operated by the state lottery.[7]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Delaware.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $2,400 | $1,550 | $626 | $7,824 |
| Casino and slots | $5,000 | $0 | $600 | $296 | $4,104 |
| Table games | $5,000 | $0 | $600 | $296 | $4,104 |
| Poker tournaments | $20,000 | $0 | $3,750 | $1,286 | $14,964 |
| Lottery | $50,000 | $12,000 | $10,350 | $3,266 | $36,384 |
| Daily fantasy sports | $5,000 | $0 | $600 | $296 | $4,104 |
| Horse racing | $8,000 | $1,920 | $1,110 | $494 | $6,396 |
Questions
- Does Delaware tax gambling winnings?
- Yes, at graduated rates from 0% to 6.6%.[1]
- Can you deduct gambling losses in Delaware?
- You can deduct losses as a Delaware itemized deduction on Form PIT-RSA, even if you took the federal standard deduction.[2]
- Does Delaware withhold tax from gambling winnings?
- We found no Delaware requirement for the Lottery, casinos or sportsbooks to withhold state tax, so any Delaware tax is due when you file.[3]Unverified
- Do nonresidents pay Delaware tax on gambling winnings?
- Partly. The statute expressly sources only pari-mutuel (horse racing) winnings to Delaware for nonresidents, though the PIT-NON instructions ask for all gambling winnings from Delaware sources.[4]Unverified
Delaware by game
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] Delaware 2025 PIT-RES Instructions · checked September 22, 2026
- [3] Del. Code tit. 30, ch. 11 (Personal Income Tax) · checked September 22, 2026
- [4] Delaware 2025 PIT-NON Instructions (Line 14 Other Income) · checked September 22, 2026
- [5] American Gaming Association, State of the States 2025 · checked September 22, 2026
- [6] Del. Code tit. 30, ch. 11, subch. II · checked September 22, 2026
- [7] Del. Code tit. 29, ch. 48 - 4817 [Repealed] · checked September 22, 2026