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WinningsTax

Massachusetts gambling winnings tax calculator

Massachusetts taxes gambling winnings as ordinary income at graduated rates from 5% to 9%.

Updated · 2026 tax rules · How we calculate

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More options
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You keep

$7,950

Cash at payout

$7,100

Total tax

$2,050

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
$500

Massachusetts taxes gambling winnings as ordinary income.

Massachusetts withholding at payout
$500

Massachusetts requires the payer to hold back 5% 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
$7,950

$10,000 minus $2,050 in federal and state tax: an effective rate of 20.5%.

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 Massachusetts taxes gambling winnings

State income tax
Massachusetts taxes gambling winnings as ordinary income at graduated rates from 5% to 9%.[1]Unverified
Gambling losses
Massachusetts doesn't follow the federal rule. You can deduct losses at Massachusetts-licensed casinos, sportsbooks and racetracks, up to your winnings from those same sources, without itemizing. Lottery and out-of-state losses don't count.[2]
Withholding
Payers withhold 5% from lottery prizes of $600 or more and from casino, sports-betting and pari-mutuel winnings that are subject to federal withholding, whatever your residency.[3]
Nonresidents
Nonresidents owe Massachusetts tax on lottery and wagering winnings from Massachusetts, including casino and licensed sports-betting wins, and file Form 1-NR/PY.[4]
Tax paid to other states
Residents get a credit for income tax paid to another state on income Massachusetts also taxes, limited to the Massachusetts tax on it.[5]
Legal gambling
Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.[6]

Also worth knowing

  • A 4% surtax applies to taxable income over $1 million (indexed), so a big jackpot can push you into it.[7]
  • Massachusetts lottery withholding starts at $600, far below the federal $5,000 lottery withholding threshold.[3]

Examples by game

For a single filer with $60,000 of other income and no gambling losses, living and winning in Massachusetts.

GameWonWithheldFederal taxState taxYou keep
Sports betting$10,000$2,900$1,550$500$7,950
Casino and slots$5,000$0$600$250$4,150
Table games$5,000$0$600$250$4,150
Poker tournaments$20,000$0$3,750$1,000$15,250
Lottery$50,000$14,500$10,350$2,500$37,150
Daily fantasy sports$5,000$0$600$250$4,150
Horse racing$8,000$2,320$1,110$400$6,490

Questions

Does Massachusetts tax gambling winnings?
Yes, at graduated rates from 5% to 9%.[1]Unverified
Can you deduct gambling losses in Massachusetts?
Massachusetts doesn't follow the federal rule. You can deduct losses at Massachusetts-licensed casinos, sportsbooks and racetracks, up to your winnings from those same sources, without itemizing. Lottery and out-of-state losses don't count.[2]
Does Massachusetts withhold tax from gambling winnings?
Payers withhold 5% from lottery prizes of $600 or more and from casino, sports-betting and pari-mutuel winnings that are subject to federal withholding, whatever your residency.[3]
Do nonresidents pay Massachusetts tax on gambling winnings?
Nonresidents owe Massachusetts tax on lottery and wagering winnings from Massachusetts, including casino and licensed sports-betting wins, and file Form 1-NR/PY.[4]

Massachusetts by game

Sources

  1. [1] Sage Knowledgebase, Massachusetts 2026 withholding (relaying DOR Circular M) · checked September 22, 2026
  2. [2] M.G.L. c. 62, s. 3.B(a)(18) · checked September 22, 2026
  3. [3] M.G.L. c. 62B, s. 2 · checked September 22, 2026
  4. [4] M.G.L. c. 62, s. 5A · checked September 22, 2026
  5. [5] M.G.L. c. 62, s. 6(a) · checked September 22, 2026
  6. [6] Massachusetts Gaming Commission: Sports Wagering Licensees · checked September 22, 2026
  7. [7] M.G.L. c. 62, s. 4 · checked September 22, 2026