Idaho gambling winnings tax calculator
Idaho taxes gambling winnings as ordinary income at graduated rates from 0% to 5.3%.
Updated · 2026 tax rules · How we calculate
You keep
$7,920
Cash at payout
$7,600
Total tax
$2,080
Over-withheld
$320
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $530
- Over-withheld
- $320
- You keep
- $7,920
$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.
Idaho 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 $2,080 in federal and state tax: an effective rate of 20.8%.
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 Idaho taxes gambling winnings
- State income tax
- Idaho taxes gambling winnings as ordinary income at graduated rates from 0% to 5.3%.[1]Unverified
- Lottery prizes
- Idaho Lottery prizes under $600 each are exempt; you subtract them on Form 39R, line 16. Larger prizes and other states' lottery prizes are taxable.[2]
- Gambling losses
- You can deduct gambling losses only if you itemize: Form 40 uses your federal Schedule A deductions, with federal limits, so the 90% limit applies.[3]
- Withholding
- The Idaho Lottery withholds 5.3% whenever federal withholding applies (prizes over $5,000). No other payer is required to withhold, so tax on other winnings is due when you file.[4]
- Nonresidents
- Nonresidents owe Idaho tax on pari-mutuel, charitable gaming and any other gambling winnings from Idaho, and big lottery winners must file an Idaho return.[5]
- Tax paid to other states
- Residents can claim a credit for income tax paid to another state (Form 40, line 21, figured on Form 39R), attaching the other state's return.[3]
- Legal gambling
- Sports betting: not legal. State lottery: yes. Casinos: yes. Online casino: not legal.[6]
Also worth knowing
- Idaho Code 63-3026A sources pari-mutuel wagering, charitable gaming and any other gambling in Idaho to Idaho, so nonresidents owe Idaho tax on those winnings.[5]
- HB 559 (2026) moved Idaho's Internal Revenue Code conformity date to January 1, 2026, retroactive to 2025, adopting nearly all of the One Big Beautiful Bill Act.[7]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Idaho.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $2,400 | $1,550 | $530 | $7,920 |
| Casino and slots | $5,000 | $0 | $600 | $265 | $4,135 |
| Table games | $5,000 | $0 | $600 | $265 | $4,135 |
| Poker tournaments | $20,000 | $0 | $3,750 | $1,060 | $15,190 |
| Lottery | $50,000 | $14,650 | $10,350 | $2,650 | $37,000 |
| Daily fantasy sports | $5,000 | $0 | $600 | $265 | $4,135 |
| Horse racing | $8,000 | $1,920 | $1,110 | $424 | $6,466 |
Questions
- Does Idaho tax gambling winnings?
- Yes, at graduated rates from 0% to 5.3%. Idaho Lottery prizes under $600 each are exempt; you subtract them on Form 39R, line 16. Larger prizes and other states' lottery prizes are taxable.[1]Unverified
- Can you deduct gambling losses in Idaho?
- You can deduct gambling losses only if you itemize: Form 40 uses your federal Schedule A deductions, with federal limits, so the 90% limit applies.[3]
- Does Idaho withhold tax from gambling winnings?
- The Idaho Lottery withholds 5.3% whenever federal withholding applies (prizes over $5,000). No other payer is required to withhold, so tax on other winnings is due when you file.[4]
- Do nonresidents pay Idaho tax on gambling winnings?
- Nonresidents owe Idaho tax on pari-mutuel, charitable gaming and any other gambling winnings from Idaho, and big lottery winners must file an Idaho return.[5]
Idaho by game
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] Idaho Form 39R Resident Supplemental Schedule (2025) · checked September 22, 2026
- [3] Idaho Form 40 and Instructions (2025) · checked September 22, 2026
- [4] Idaho Code 63-3035A Withholding on lottery winnings · checked September 22, 2026
- [5] Idaho Code 63-3026A Idaho taxable income of nonresidents · checked September 22, 2026
- [6] Wikipedia, Gambling in the United States · checked September 22, 2026
- [7] Idaho HB 559 (2026) · checked September 22, 2026