Daily fantasy sports winnings tax in Indiana
Indiana taxes daily fantasy winnings as ordinary income at a flat 2.95%.
Updated · 2026 tax rules · How we calculate
You keep
$4,253
Cash at payout
$5,000
Total tax
$748
Due when you file
$748
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $148
- Still to pay when you file
- $748
- You keep
- $4,253
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.
Indiana taxes gambling winnings as ordinary income.
Tax owed ($748) 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 $748 in federal and state tax: an effective rate of 15%.
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
- Indiana tax
- Indiana taxes daily fantasy winnings as ordinary income at a flat 2.95%.[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
- Indiana withholding
- Indiana withholds 2.95% whenever federal tax is withheld.[3]Unverified
- Gambling losses
- Indiana has no deduction for gambling losses, even if you claim them on your federal return.[4]
- Visitors
- Indiana 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 Indiana.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $44 | $1,276 |
| $2,000 | Yes | $0 | $240 | $59 | $1,701 |
| $5,000 | Yes | $0 | $600 | $148 | $4,253 |
| $10,000 | Yes | $0 | $1,550 | $295 | $8,155 |
| $100,000 | Yes | $0 | $22,114 | $2,950 | $74,936 |
Questions
- How much is Indiana tax on daily fantasy winnings?
- Indiana taxes daily fantasy winnings as ordinary income at a flat 2.95%.[1]
- Does Indiana withhold tax from daily fantasy winnings?
- Indiana withholds 2.95% whenever federal tax is withheld.[3]Unverified
- Do visitors pay Indiana tax on daily fantasy winnings?
- Indiana taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
More for Indiana
All of Indiana's gambling tax rules · Daily fantasy sports in every state
Sources
- [1] Indiana DOR Departmental Notice #1 (2026) · checked September 22, 2026
- [2] IRS, Instructions for Forms 1099-MISC and 1099-NEC (2026) · checked September 22, 2026
- [3] Indiana DOR Departmental Notice #16 (March 2026): Withholding on winnings from riverboat gaming · checked September 22, 2026
- [4] Indiana DOR Individual Income Tax FAQs · checked September 22, 2026
- [5] Indiana IT-40PNR Booklet 2025 · checked September 22, 2026