Sports betting winnings tax in Maine
Maine taxes sports betting winnings as ordinary income at graduated rates from 5.8% to 9.15%.
Updated · 2026 tax rules · How we calculate
You keep
$7,775
Cash at payout
$6,885
Total tax
$2,225
Over-withheld
$890
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $675
- Maine withholding at payout
- $715
- Over-withheld
- $890
- You keep
- $7,775
$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.
The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
Maine taxes gambling winnings as ordinary income.
Maine requires the payer to hold back 7.15% for state tax.
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.
$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.
The rules
- Maine tax
- Maine taxes sports betting winnings as ordinary income at graduated rates from 5.8% to 9.15%.[1]
- Federal tax form
- Sports betting winnings are reported on a W-2G when they are $2,000 or more (after subtracting the wager) and at least 300 times the wager. The threshold was $600 before 2026.[2]
- Federal withholding
- 24% is withheld from sports betting winnings of more than $5,000, but only when the win is also at least 300 times the wager.[2]
- Maine withholding
- Maine withholds 7.15% whenever federal tax is withheld.[5]
- Gambling losses
- You can deduct gambling losses only as part of Maine itemized deductions, which start from federal itemized deductions and are capped and phased out at higher incomes.[6]Unverified
- Visitors
- Maine taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[7]
- Where to play
- Sports betting in Maine: legal online and in person. Winnings from a bet placed in another state are taxable here all the same.[8]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Maine.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $101 | $1,219 |
| $2,000 | No | $0 | $240 | $135 | $1,625 |
| $10,000 | Yes | $3,115 | $1,550 | $675 | $7,775 |
| $100,000 | Yes | $31,150 | $22,114 | $7,047 | $70,839 |
Assumes a $25 stake on this bet, so the 300x test is met at every amount shown.
Questions
- How much is Maine tax on sports betting winnings?
- Maine taxes sports betting winnings as ordinary income at graduated rates from 5.8% to 9.15%.[1]
- Does Maine withhold tax from sports betting winnings?
- Maine withholds 7.15% whenever federal tax is withheld.[5]
- Do visitors pay Maine tax on sports betting winnings?
- Maine taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[7]
More for Maine
All of Maine's gambling tax rules · Sports betting in every state
Sources
- [1] Maine Revenue Services, 2026 Individual Income Tax Rate Schedules (revised May 2026) · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
- [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [5] Maine Tax Alert July 2022: Law Change - Maine Income Tax Withholding on Gambling Winnings · checked September 22, 2026
- [6] 36 M.R.S. 5125 Itemized deductions · checked September 22, 2026
- [7] MRS Rule 806 (nonresident income sourcing), August 2024 · checked September 22, 2026
- [8] Maine Gambling Control Unit: Sports Wagering · checked September 22, 2026