Daily fantasy sports winnings tax in Delaware
Delaware taxes daily fantasy winnings as ordinary income at graduated rates from 0% to 6.6%.
Updated · 2026 tax rules · How we calculate
You keep
$4,104
Cash at payout
$5,000
Total tax
$896
Due when you file
$896
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $296
- Still to pay when you file
- $896
- You keep
- $4,104
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.
Delaware taxes gambling winnings as ordinary income.
Tax owed ($896) 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 $896 in federal and state tax: an effective rate of 17.9%.
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
- Delaware tax
- Delaware taxes daily fantasy winnings as ordinary income at graduated rates from 0% to 6.6%.[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
- Delaware withholding
- No Delaware withholding requirement for daily fantasy winnings. Tax is due when you file.[3]Unverified
- Gambling losses
- You can deduct losses as a Delaware itemized deduction on Form PIT-RSA, even if you took the federal standard deduction.[4]
- Visitors
- Delaware does not tax nonresidents on daily fantasy winnings. Visitors owe tax to their home state instead.[5]Unverified
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Delaware.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $83 | $1,237 |
| $2,000 | Yes | $0 | $240 | $111 | $1,649 |
| $5,000 | Yes | $0 | $600 | $296 | $4,104 |
| $10,000 | Yes | $0 | $1,550 | $626 | $7,824 |
| $100,000 | Yes | $0 | $22,114 | $6,566 | $71,320 |
Questions
- How much is Delaware tax on daily fantasy winnings?
- Delaware taxes daily fantasy winnings as ordinary income at graduated rates from 0% to 6.6%.[1]
- Does Delaware withhold tax from daily fantasy winnings?
- Delaware has no withholding requirement for daily fantasy winnings. Tax is due when you file.[3]Unverified
- Do visitors pay Delaware tax on daily fantasy winnings?
- Delaware does not tax nonresidents on daily fantasy winnings. Visitors owe tax to their home state instead.[5]Unverified
More for Delaware
All of Delaware'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] Del. Code tit. 30, ch. 11 (Personal Income Tax) · checked September 22, 2026
- [4] Delaware 2025 PIT-RES Instructions · checked September 22, 2026
- [5] Delaware 2025 PIT-NON Instructions (Line 14 Other Income) · checked September 22, 2026