Illinois gambling winnings tax calculator
Illinois taxes gambling winnings as ordinary income at a flat 4.95%.
Updated · 2026 tax rules · How we calculate
You keep
$7,955
Cash at payout
$7,105
Total tax
$2,045
Over-withheld
$850
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $495
- Illinois withholding at payout
- $495
- Over-withheld
- $850
- You keep
- $7,955
$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.
Illinois taxes gambling winnings as ordinary income.
Illinois requires the payer to hold back 4.95% for state tax.
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 $2,045 in federal and state tax: an effective rate of 20.5%.
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.
How Illinois taxes gambling winnings
- State income tax
- Illinois taxes gambling winnings as ordinary income at a flat 4.95%.[1]
- Gambling losses
- Illinois allows no deduction for gambling losses, even if you itemize federally, so you're taxed on gross winnings.[2]
- Withholding
- The Illinois Lottery withholds 4.95% from payments of $1,000 or more. Casinos, racetracks and sportsbooks withhold 4.95% whenever federal withholding applies, for residents and nonresidents.[3]
- Nonresidents
- Nonresidents owe Illinois tax on Illinois gambling winnings, including sports bets, and must file an Illinois return.[4]
- Tax paid to other states
- Residents can claim a credit on Schedule CR for tax paid to another state on winnings won there, by including them in the non-Illinois portion.[4]
- Legal gambling
- Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.[5]
Also worth knowing
- Illinois has taxed nonresidents on Illinois gambling winnings, including sports wagering, since tax years ending on or after December 31, 2019.[4]
- Illinois Lottery withholding starts at a single payment of $1,000, far below the federal $5,000 threshold, and applies even if each co-owner's share is under $1,000.[6]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Illinois.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $2,895 | $1,550 | $495 | $7,955 |
| Casino and slots | $5,000 | $0 | $600 | $248 | $4,153 |
| Table games | $5,000 | $0 | $600 | $248 | $4,153 |
| Poker tournaments | $20,000 | $0 | $3,750 | $990 | $15,260 |
| Lottery | $50,000 | $14,475 | $10,350 | $2,475 | $37,175 |
| Daily fantasy sports | $5,000 | $0 | $600 | $248 | $4,153 |
| Horse racing | $8,000 | $2,316 | $1,110 | $396 | $6,494 |
Questions
- Does Illinois tax gambling winnings?
- Yes, at a flat 4.95%.[1]
- Can you deduct gambling losses in Illinois?
- Illinois allows no deduction for gambling losses, even if you itemize federally, so you're taxed on gross winnings.[2]
- Does Illinois withhold tax from gambling winnings?
- The Illinois Lottery withholds 4.95% from payments of $1,000 or more. Casinos, racetracks and sportsbooks withhold 4.95% whenever federal withholding applies, for residents and nonresidents.[3]
- Do nonresidents pay Illinois tax on gambling winnings?
- Nonresidents owe Illinois tax on Illinois gambling winnings, including sports bets, and must file an Illinois return.[4]
Illinois by game
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] 2025 IL-1040 Schedule M Instructions · checked September 22, 2026
- [3] Illinois DOR Pub-130: Withholding Illinois Income Tax for Lottery or Gambling Winnings · checked September 22, 2026
- [4] Illinois DOR Q&A: Do I have to pay income tax on gambling winnings if I already paid the tax in the state where I won? · checked September 22, 2026
- [5] Covers, Legal sports betting in the US · checked September 22, 2026
- [6] Illinois DOR Publication 130 (PDF) · checked September 22, 2026