Hawaii gambling winnings tax calculator
Hawaii taxes gambling winnings as ordinary income at graduated rates from 1.4% to 11%.
Updated · 2026 tax rules · How we calculate
You keep
$7,690
Cash at payout
$7,600
Total tax
$2,310
Over-withheld
$90
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $760
- Over-withheld
- $90
- You keep
- $7,690
$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.
Hawaii 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 $2,310 in federal and state tax: an effective rate of 23.1%.
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 Hawaii taxes gambling winnings
- State income tax
- Hawaii taxes gambling winnings as ordinary income at graduated rates from 1.4% to 11%.[1]Unverified
- Gambling losses
- You can deduct gambling losses only as a Hawaii itemized deduction (Worksheet A-6, line 30), up to your winnings. Hawaii's 2026 conformity law keeps the federal 90% limit.[2]
- Withholding
- Hawaii has no legal gambling, so no payer withholds Hawaii tax. Any Hawaii tax on your winnings is due when you file.[3]Unverified
- Nonresidents
- No legal gambling takes place in Hawaii, so nonresidents have no Hawaii-source winnings to tax.[3]Unverified
- Tax paid to other states
- Residents can claim a credit on Schedule CR for income tax paid to another state, but can't also deduct that tax as an itemized deduction.[2]
- Legal gambling
- Sports betting: not legal. State lottery: no. Casinos: no. Online casino: not legal.[3]
Also worth knowing
- Act 35 (HB 2329, 2026) conforms Hawaii to the Internal Revenue Code as amended December 31, 2025, so the federal 90% limit on wagering losses applies for 2026.[4]
- Hawaii ended its separate allowance of miscellaneous itemized deductions under Act 35, but gambling losses stay deductible on Worksheet A-6, line 30, because they aren't subject to the 2% floor.[5]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Hawaii.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $2,400 | $1,550 | $760 | $7,690 |
| Casino and slots | $5,000 | $0 | $600 | $380 | $4,020 |
| Table games | $5,000 | $0 | $600 | $380 | $4,020 |
| Poker tournaments | $20,000 | $0 | $3,750 | $1,520 | $14,730 |
| Lottery | $50,000 | $12,000 | $10,350 | $3,800 | $35,850 |
| Daily fantasy sports | $5,000 | $0 | $600 | $380 | $4,020 |
| Horse racing | $8,000 | $1,920 | $1,110 | $608 | $6,282 |
Questions
- Does Hawaii tax gambling winnings?
- Yes, at graduated rates from 1.4% to 11%.[1]Unverified
- Can you deduct gambling losses in Hawaii?
- You can deduct gambling losses only as a Hawaii itemized deduction (Worksheet A-6, line 30), up to your winnings. Hawaii's 2026 conformity law keeps the federal 90% limit.[2]
- Does Hawaii withhold tax from gambling winnings?
- Hawaii has no legal gambling, so no payer withholds Hawaii tax. Any Hawaii tax on your winnings is due when you file.[3]Unverified
- Do nonresidents pay Hawaii tax on gambling winnings?
- No legal gambling takes place in Hawaii, so nonresidents have no Hawaii-source winnings to tax.[3]Unverified
Hawaii by game
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] Hawaii Form N-11 Instructions (2025) · checked September 22, 2026
- [3] Wikipedia, Gambling in the United States · checked September 22, 2026
- [4] Hawaii HB 2329 CD1 (Act 35, 2026) · checked September 22, 2026
- [5] Hawaii Department of Taxation Announcement 2026-06 · checked September 22, 2026