Daily fantasy sports winnings tax in Iowa
Iowa taxes daily fantasy winnings as ordinary income at a flat 3.8%.
Updated · 2026 tax rules · How we calculate
You keep
$4,210
Cash at payout
$5,000
Total tax
$790
Due when you file
$790
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $190
- Still to pay when you file
- $790
- You keep
- $4,210
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.
Iowa taxes gambling winnings as ordinary income.
Tax owed ($790) 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 $790 in federal and state tax: an effective rate of 15.8%.
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.
The rules
- Iowa tax
- Iowa taxes daily fantasy winnings as ordinary income at a flat 3.8%.[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
- Iowa withholding
- No Iowa withholding requirement for daily fantasy winnings. Tax is due when you file.[3]
- Gambling losses
- Iowa starts from federal taxable income, so gambling losses lower your Iowa tax only if you itemize them federally, with the federal 90% limit.[4]
- Visitors
- Iowa 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 Iowa.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $57 | $1,263 |
| $2,000 | Yes | $0 | $240 | $76 | $1,684 |
| $5,000 | Yes | $0 | $600 | $190 | $4,210 |
| $10,000 | Yes | $0 | $1,550 | $380 | $8,070 |
| $100,000 | Yes | $0 | $22,114 | $3,800 | $74,086 |
Questions
- How much is Iowa tax on daily fantasy winnings?
- Iowa taxes daily fantasy winnings as ordinary income at a flat 3.8%.[1]
- Does Iowa withhold tax from daily fantasy winnings?
- Iowa has no withholding requirement for daily fantasy winnings. Tax is due when you file.[3]
- Do visitors pay Iowa tax on daily fantasy winnings?
- Iowa taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
More for Iowa
All of Iowa'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] Iowa DOR: Iowa Withholding Tax Information · checked September 22, 2026
- [4] Iowa DOR IA 1040 Expanded Instructions, Intro 4: Conformity with the Internal Revenue Code · checked September 22, 2026
- [5] Iowa DOR: Iowa Tax On Gambling · checked September 22, 2026