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WinningsTax

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

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$
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More options
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You keep

$7,690

Cash at payout

$7,600

Total tax

$2,310

Over-withheld

$90

Form W-2G
Yes

$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.

Federal withholding at payout
$2,400

The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.

Federal tax on the winnings
$1,550

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.

State tax
$760

Hawaii taxes gambling winnings as ordinary income.

Over-withheld
$90

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.

You keep
$7,690

$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.

GameWonWithheldFederal taxState taxYou 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. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] Hawaii Form N-11 Instructions (2025) · checked September 22, 2026
  3. [3] Wikipedia, Gambling in the United States · checked September 22, 2026
  4. [4] Hawaii HB 2329 CD1 (Act 35, 2026) · checked September 22, 2026
  5. [5] Hawaii Department of Taxation Announcement 2026-06 · checked September 22, 2026