Horse racing winnings tax in Delaware
Delaware taxes horse racing winnings as ordinary income at graduated rates from 0% to 6.6%.
Updated · 2026 tax rules · How we calculate
You keep
$6,396
Cash at payout
$6,080
Total tax
$1,604
Over-withheld
$316
- Form W-2G
- Yes
- Federal withholding at payout
- $1,920
- Federal tax on the winnings
- $1,110
- State tax
- $494
- Over-withheld
- $316
- You keep
- $6,396
$8,000 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.
$8,000 minus $1,604 in federal and state tax: an effective rate of 20%.
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 horse racing winnings as ordinary income at graduated rates from 0% to 6.6%.[1]
- Federal tax form
- Horse racing (pari-mutuel) winnings are reported on a W-2G when they are $2,000 or more (after subtracting the wager) and at least 300 times the wager. The threshold was $600 before 2026.[2]
- Federal withholding
- 24% is withheld from pari-mutuel winnings of more than $5,000, but only when the win is also at least 300 times the wager.[2]
- Delaware withholding
- No Delaware withholding requirement for horse racing winnings. Tax is due when you file.[5]Unverified
- Gambling losses
- You can deduct losses as a Delaware itemized deduction on Form PIT-RSA, even if you took the federal standard deduction.[6]
- Visitors
- Delaware taxes nonresidents on horse racing winnings won there, so visitors may need to file a nonresident return.[7]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 | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $83 | $1,237 |
| $2,000 | Yes | $0 | $240 | $111 | $1,649 |
| $8,000 | Yes | $1,920 | $1,110 | $494 | $6,396 |
| $10,000 | Yes | $2,400 | $1,550 | $626 | $7,824 |
| $100,000 | Yes | $24,000 | $22,114 | $6,566 | $71,320 |
Assumes a $2 bet amount, so the 300x test is met at every amount shown.
Questions
- How much is Delaware tax on horse racing winnings?
- Delaware taxes horse racing winnings as ordinary income at graduated rates from 0% to 6.6%.[1]
- Does Delaware withhold tax from horse racing winnings?
- Delaware has no withholding requirement for horse racing winnings. Tax is due when you file.[5]Unverified
- Do visitors pay Delaware tax on horse racing winnings?
- Delaware taxes nonresidents on horse racing winnings won there, so visitors may need to file a nonresident return.[7]Unverified
More for Delaware
All of Delaware's gambling tax rules · Horse racing in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
- [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [5] Del. Code tit. 30, ch. 11 (Personal Income Tax) · checked September 22, 2026
- [6] Delaware 2025 PIT-RES Instructions · checked September 22, 2026
- [7] Delaware 2025 PIT-NON Instructions (Line 14 Other Income) · checked September 22, 2026