Sports betting winnings tax in Massachusetts
Massachusetts taxes sports betting winnings as ordinary income at graduated rates from 5% to 9%.
Updated · 2026 tax rules · How we calculate
You keep
$7,950
Cash at payout
$7,100
Total tax
$2,050
Over-withheld
$850
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $500
- Massachusetts withholding at payout
- $500
- Over-withheld
- $850
- You keep
- $7,950
$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.
Massachusetts taxes gambling winnings as ordinary income.
Massachusetts requires the payer to hold back 5% 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 $2,050 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.
The rules
- Massachusetts tax
- Massachusetts taxes sports betting winnings as ordinary income at graduated rates from 5% to 9%.[1]Unverified
- 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]
- Massachusetts withholding
- Massachusetts withholds 5% whenever federal tax is withheld.[5]
- 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.[6]
- Visitors
- Massachusetts taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[7]
- Where to play
- Sports betting in Massachusetts: 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 Massachusetts.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $75 | $1,245 |
| $2,000 | No | $0 | $240 | $100 | $1,660 |
| $10,000 | Yes | $2,900 | $1,550 | $500 | $7,950 |
| $100,000 | Yes | $29,000 | $22,114 | $5,000 | $72,886 |
Assumes a $25 stake on this bet, so the 300x test is met at every amount shown.
Questions
- How much is Massachusetts tax on sports betting winnings?
- Massachusetts taxes sports betting winnings as ordinary income at graduated rates from 5% to 9%.[1]Unverified
- Does Massachusetts withhold tax from sports betting winnings?
- Massachusetts withholds 5% whenever federal tax is withheld.[5]
- Do visitors pay Massachusetts tax on sports betting winnings?
- Massachusetts taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[7]
More for Massachusetts
All of Massachusetts's gambling tax rules · Sports betting in every state
Sources
- [1] Sage Knowledgebase, Massachusetts 2026 withholding (relaying DOR Circular M) · 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] M.G.L. c. 62B, s. 2 · checked September 22, 2026
- [6] M.G.L. c. 62, s. 3.B(a)(18) · checked September 22, 2026
- [7] M.G.L. c. 62, s. 5A · checked September 22, 2026
- [8] Massachusetts Gaming Commission: Sports Wagering Licensees · checked September 22, 2026