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WinningsTax

Louisiana gambling winnings tax calculator

Louisiana taxes gambling winnings as ordinary income at a flat 3%.

Updated · 2026 tax rules · How we calculate

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$
$
$
More options
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You keep

$8,150

Cash at payout

$7,300

Total tax

$1,850

Over-withheld

$850

Form W-2G
Yes

$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.

Federal withholding at payout
$2,400

The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.

Federal tax on the winnings
$1,550

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.

State tax
$300

Louisiana taxes gambling winnings as ordinary income.

Louisiana withholding at payout
$300

Louisiana requires the payer to hold back 3% for state tax.

Over-withheld
$850

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.

You keep
$8,150

$10,000 minus $1,850 in federal and state tax: an effective rate of 18.5%.

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 Louisiana taxes gambling winnings

State income tax
Louisiana taxes gambling winnings as ordinary income at a flat 3%.[1]
Gambling losses
Louisiana allows no deduction for gambling losses. Its only itemized-type deduction covers medical expenses above the federal standard deduction.[2] How the federal 90% loss rule works
Withholding
Louisiana payers withhold 3% whenever federal withholding applies, and casinos also withhold 3% from slot jackpots over $1,200. The Louisiana Lottery withholds 3% from prizes of $5,000 or more.[3]
Nonresidents
Nonresidents with Louisiana winnings who must file federally must file a Louisiana return (Form IT-540B) and get back any withholding above what they owe.[4]
Tax paid to other states
Residents get a credit for net income tax paid to another state on income Louisiana also taxes, limited to the Louisiana tax on that income.[5]
Legal gambling
Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.[6]

Also worth knowing

  • Louisiana casinos must withhold state tax from slot jackpots over $1,200 even though federal law doesn't require withholding on slot wins.[3]
  • The switch to a flat 3% income tax in 2025 also cut Louisiana's gambling withholding rate, which is tied to the top rate, from 4.25% to 3%.[7]

Examples by game

For a single filer with $60,000 of other income and no gambling losses, living and winning in Louisiana. Louisiana ranks 14th of 51 (tied with 1 other state) for what you keep from a $10,000 sports bet, and 15th of 51 for a $1 million lottery prize. See every state ranked.

GameWonWithheldFederal taxState taxYou keep
Sports betting$10,000$2,700$1,550$300$8,150
Casino and slots$5,000$150$600$150$4,250
Table games$5,000$0$600$150$4,250
Poker tournaments$20,000$0$3,750$600$15,650
Lottery$50,000$13,500$10,350$1,500$38,150
Daily fantasy sports$5,000$0$600$150$4,250
Horse racing$8,000$2,160$1,110$240$6,650

Questions

Does Louisiana tax gambling winnings?
Yes, at a flat 3%.[1]
Can you deduct gambling losses in Louisiana?
Louisiana allows no deduction for gambling losses. Its only itemized-type deduction covers medical expenses above the federal standard deduction.[2]
Does Louisiana withhold tax from gambling winnings?
Louisiana payers withhold 3% whenever federal withholding applies, and casinos also withhold 3% from slot jackpots over $1,200. The Louisiana Lottery withholds 3% from prizes of $5,000 or more.[3]
Do nonresidents pay Louisiana tax on gambling winnings?
Nonresidents with Louisiana winnings who must file federally must file a Louisiana return (Form IT-540B) and get back any withholding above what they owe.[4]

Louisiana by game

Gambling across the border from Louisiana

Win in a neighboring state and both states can tax it: the state you won in as a visitor, and Louisiana as your home state, usually with a credit for the tax you paid there.

StateTop rateVisitors taxed
Arkansas3.7%[8]Taxed[9]
Mississippi4%[1]Taxed[10]
TexasNo income tax[1]No

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] La. R.S. 47:293 Definitions · checked September 22, 2026
  3. [3] LAC 61:I.1525 Income Tax Withholding on Gaming Winnings (LDR) · checked September 22, 2026
  4. [4] LDR FAQ: Texas resident who won at a Louisiana casino · checked September 22, 2026
  5. [5] Act 6 of 2018 2nd Extraordinary Session (HB 18), amending R.S. 47:33 · checked September 22, 2026
  6. [6] Louisiana Gaming Control Board: Licensed Platforms · checked September 22, 2026
  7. [7] LDR Revenue Information Bulletin 25-012: Louisiana Individual Income Tax Reform · checked September 22, 2026
  8. [8] Arkansas Bureau of Legislative Research, SB1 fiscal impact (2026 First Extraordinary Session) · checked September 22, 2026
  9. [9] Arkansas 2025 AR1000F/AR1000NR Instructions · checked September 22, 2026
  10. [10] MS DOR 2025 Form 80-100 Resident, Non-Resident and Part-Year Resident Income Tax Instructions · checked September 22, 2026