Daily fantasy sports winnings tax in Illinois
Illinois taxes daily fantasy winnings as ordinary income at a flat 4.95%.
Updated · 2026 tax rules · How we calculate
You keep
$4,153
Cash at payout
$5,000
Total tax
$848
Due when you file
$848
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $248
- Still to pay when you file
- $848
- You keep
- $4,153
Daily fantasy sites report net winnings of $2,000 or more for the year on a 1099-MISC.
Daily fantasy sports winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file. If you don't give the payer your Social Security number, 24% backup withholding applies.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 12% bracket.
Illinois taxes gambling winnings as ordinary income.
Tax owed ($848) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $848 in federal and state tax: an effective rate of 17%.
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
- Illinois tax
- Illinois taxes daily fantasy winnings as ordinary income at a flat 4.95%.[1]
- Federal tax form
- Daily fantasy sites generally report net winnings of $2,000 or more for the year on Form 1099-MISC, not a W-2G. The 1099-MISC threshold was $600 before 2026.[2]Unverified
- Federal withholding
- Fantasy sites don't withhold federal tax from winnings in practice.[2]Unverified
- Illinois withholding
- Illinois withholds 4.95% whenever federal tax is withheld.[3]
- Gambling losses
- Illinois allows no deduction for gambling losses, even if you itemize federally, so you're taxed on gross winnings.[4]
- Visitors
- Illinois taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Illinois.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $74 | $1,246 |
| $2,000 | Yes | $0 | $240 | $99 | $1,661 |
| $5,000 | Yes | $0 | $600 | $248 | $4,153 |
| $10,000 | Yes | $0 | $1,550 | $495 | $7,955 |
| $100,000 | Yes | $0 | $22,114 | $4,950 | $72,936 |
Questions
- How much is Illinois tax on daily fantasy winnings?
- Illinois taxes daily fantasy winnings as ordinary income at a flat 4.95%.[1]
- Does Illinois withhold tax from daily fantasy winnings?
- Illinois withholds 4.95% whenever federal tax is withheld.[3]
- Do visitors pay Illinois tax on daily fantasy winnings?
- Illinois taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
More for Illinois
All of Illinois's gambling tax rules · Daily fantasy sports in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms 1099-MISC and 1099-NEC (2026) · checked September 22, 2026
- [3] Illinois DOR Pub-130: Withholding Illinois Income Tax for Lottery or Gambling Winnings · checked September 22, 2026
- [4] 2025 IL-1040 Schedule M Instructions · checked September 22, 2026
- [5] 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