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WinningsTax

Maine gambling winnings tax calculator

Maine taxes gambling winnings as ordinary income at graduated rates from 5.8% to 9.15%.

Updated · 2026 tax rules · How we calculate

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$
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More options
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You keep

$7,775

Cash at payout

$6,885

Total tax

$2,225

Over-withheld

$890

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
$675

Maine taxes gambling winnings as ordinary income.

Maine withholding at payout
$715

Maine requires the payer to hold back 7.15% for state tax.

Over-withheld
$890

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
$7,775

$10,000 minus $2,225 in federal and state tax: an effective rate of 22.3%.

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 Maine taxes gambling winnings

State income tax
Maine taxes gambling winnings as ordinary income at graduated rates from 5.8% to 9.15%.[1]
Gambling losses
You can deduct gambling losses only if you itemize on your federal return. Maine itemized deductions start from your federal Schedule A total, so the federal 90% limit carries over, and they are capped ($37,100 for 2026, not counting medical) and phased out at higher incomes.[2] How the federal 90% loss rule works
Withholding
Payers withhold Maine tax at the top rate, 7.15%, from winnings subject to federal withholding. The Maine Lottery withholds 7.15% from prizes over $5,000.[6]
Nonresidents
Nonresidents owe Maine tax on winnings from gambling in Maine and from lottery tickets bought in Maine, including Tri-State Lotto tickets.[7]
Tax paid to other states
Residents can claim a credit for income tax paid to another state or its localities, limited to the share of Maine tax on that income.[8]
Legal gambling
Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: legal.[9]

Also worth knowing

  • Tri-State Lotto (Maine, New Hampshire, Vermont) winnings are Maine income for a nonresident only if the winning ticket was bought in Maine.[7]
  • Since August 8, 2022, Maine withholds on gambling winnings at its top income tax rate (7.15%), replacing the old 5% flat rate.[6]
  • Maine caps itemized deductions other than medical expenses, so large gambling losses may be only partly deductible on the Maine return even when fully deductible federally.[2]

Examples by game

For a single filer with $60,000 of other income and no gambling losses, living and winning in Maine. Maine ranks 47th of 51 for what you keep from a $10,000 sports bet, and 45th of 51 for a $1 million lottery prize. See every state ranked.

GameWonWithheldFederal taxState taxYou keep
Sports betting$10,000$3,115$1,550$675$7,775
Casino and slots$5,000$0$600$338$4,063
Table games$5,000$0$600$338$4,063
Poker tournaments$20,000$0$3,750$1,350$14,900
Lottery$50,000$15,575$10,350$3,472$36,178
Daily fantasy sports$5,000$0$600$338$4,063
Horse racing$8,000$2,492$1,110$540$6,350

Questions

Does Maine tax gambling winnings?
Yes, at graduated rates from 5.8% to 9.15%.[1]
Can you deduct gambling losses in Maine?
You can deduct gambling losses only if you itemize on your federal return. Maine itemized deductions start from your federal Schedule A total, so the federal 90% limit carries over, and they are capped ($37,100 for 2026, not counting medical) and phased out at higher incomes.[2]
Does Maine withhold tax from gambling winnings?
Payers withhold Maine tax at the top rate, 7.15%, from winnings subject to federal withholding. The Maine Lottery withholds 7.15% from prizes over $5,000.[6]
Do nonresidents pay Maine tax on gambling winnings?
Nonresidents owe Maine tax on winnings from gambling in Maine and from lottery tickets bought in Maine, including Tri-State Lotto tickets.[7]

Gambling across the border from Maine

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

StateTop rateVisitors taxed
New HampshireNo income tax[10]No

Sources

  1. [1] Maine Revenue Services, 2026 Individual Income Tax Rate Schedules (revised May 2026) · checked September 22, 2026
  2. [2] 36 M.R.S. § 5125, Itemized deductions · checked October 2, 2026
  3. [3] Maine Revenue Services, 2026 Session Legislation Enacted · checked October 2, 2026
  4. [4] 2025 Form 1040ME Schedule 2, Itemized Deductions · checked October 2, 2026
  5. [5] MRS 2026 Phaseout of Itemized/Standard Deductions Worksheet · checked October 2, 2026
  6. [6] Maine Tax Alert July 2022: Law Change - Maine Income Tax Withholding on Gambling Winnings · checked September 22, 2026
  7. [7] MRS Rule 806 (nonresident income sourcing), August 2024 · checked September 22, 2026
  8. [8] 36 M.R.S. 5217-A Credit for income tax paid to other taxing jurisdictions · checked September 22, 2026
  9. [9] Maine Gambling Control Unit: Sports Wagering · checked September 22, 2026
  10. [10] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  11. [11] NH RSA Chapter 77 (repealed effective January 1, 2025) · checked September 22, 2026