Horse racing winnings tax in Hawaii
Hawaii taxes horse racing winnings as ordinary income at graduated rates from 1.4% to 11%.
Updated · 2026 tax rules · How we calculate
You keep
$6,282
Cash at payout
$6,080
Total tax
$1,718
Over-withheld
$202
- Form W-2G
- Yes
- Federal withholding at payout
- $1,920
- Federal tax on the winnings
- $1,110
- State tax
- $608
- Over-withheld
- $202
- You keep
- $6,282
$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.
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.
$8,000 minus $1,718 in federal and state tax: an effective rate of 21.5%.
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
- Hawaii tax
- Hawaii taxes horse racing winnings as ordinary income at graduated rates from 1.4% to 11%.[1]Unverified
- 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]
- Hawaii withholding
- No Hawaii withholding requirement for horse racing winnings. Tax is due when you file.[5]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.[6]
- Visitors
- Hawaii does not tax nonresidents on horse racing 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 Hawaii.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $114 | $1,206 |
| $2,000 | Yes | $0 | $240 | $152 | $1,608 |
| $8,000 | Yes | $1,920 | $1,110 | $608 | $6,282 |
| $10,000 | Yes | $2,400 | $1,550 | $760 | $7,690 |
| $100,000 | Yes | $24,000 | $22,114 | $7,688 | $70,198 |
Assumes a $2 bet amount, so the 300x test is met at every amount shown.
Questions
- How much is Hawaii tax on horse racing winnings?
- Hawaii taxes horse racing winnings as ordinary income at graduated rates from 1.4% to 11%.[1]Unverified
- Does Hawaii withhold tax from horse racing winnings?
- Hawaii has no withholding requirement for horse racing winnings. Tax is due when you file.[5]Unverified
- Do visitors pay Hawaii tax on horse racing winnings?
- Hawaii does not tax nonresidents on horse racing winnings. Visitors owe tax to their home state instead.[5]Unverified
More for Hawaii
All of Hawaii'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] Wikipedia, Gambling in the United States · checked September 22, 2026
- [6] Hawaii Form N-11 Instructions (2025) · checked September 22, 2026