Methodology and sources
How the numbers are worked out, what the calculator assumes, and where each rule comes from.
Updated · 2026 tax rules · How we calculate
How a result is calculated
- Tax form. The win is checked against the 2026 reporting threshold for its game and, for sports bets, races and lotteries, the 300-times-the-wager test.
- Federal withholding. 24% of the win when it is over $5,000 and the game is subject to withholding.[1]
- Federal tax. Tax on your other income plus the win, minus tax on your other income alone, using the 2026 brackets and standard deduction for your filing status. The win is taxed at the brackets it actually lands in.[3]
- Losses. 90% of losses, capped at the win, added to your other itemized deductions. They only count if that total beats the standard deduction. For incomes in the 37% bracket, itemized deductions are then reduced by 2/37 of the smaller of the deductions or the income above the start of that bracket.[5]
- State tax. The same with-and-without calculation using your state's 2026 brackets, standard deduction and exemption, and its own treatment of gambling losses. States that exempt their lottery, or tax in-state casino wins at a flat rate, are handled separately.
- Winning in another state. That state's nonresident tax, if it has one, plus your home state's tax minus its credit for the other state's tax, capped at what your home state would have charged.
- State withholding. The rule of the state where you won, if it requires withholding for that game.
- What you keep. The win minus federal and state tax. “Due when you file” is tax minus what was withheld.
What it assumes
- The win you enter is your only gambling income for the year, and losses you enter are for the same year.
- “Amount won” is the payout minus your stake. For slots, it's the jackpot.
- Your other income is all ordinary taxable income. Capital gains rates, credits, the extra standard deduction for age 65 or over, the senior deduction and phase-outs tied to income are not modeled.
- States publish single and joint schedules. Heads of household and married people filing separately use the single schedule for state tax, which can overstate state tax slightly.
- State loss deductions follow your federal choice to itemize. A few states let you itemize on the state return when you don't federally; there the calculator may understate the state deduction.
- Local income taxes (New York City, Maryland counties, Indiana counties, Ohio and Michigan cities, and others) are listed on state pages but not calculated.
- Nonresident state tax is estimated by stacking the win on your other income, which approximates how most states prorate.
- Professional gamblers (Schedule C, self-employment tax) and nonresident aliens are not modeled.
- The “100% of losses” option shows the effect of the pending FULL HOUSE Act. It is not current law.
Where the rules come from
Every threshold, rate and state rule lives in versioned data files, one folder per tax year, separate from the code. Each rule records its source, the date someone last checked it against that source, and whether they could confirm it there. The site will not build if a rule is missing any of those.
Federal rules come from the Internal Revenue Code, IRS forms, instructions and publications, and the Federal Register. State rules come from each state's revenue department, statutes and lottery, with the Tax Foundation's 2026 rate table for brackets where the state had not changed them. Legal-status fields come from state regulators or, where those weren't reachable, secondary sources, and are marked unverified.
Rules are rechecked at the start of each tax year, when the IRS publishes new forms, and when a state changes its law. Found something wrong? See corrections.
What we couldn't verify
129 of 605 rules could not be confirmed on a primary source when last checked. They are flagged Unverified wherever they appear. The list:
| Where | Rule | Why |
|---|---|---|
| Federal | Top-bracket itemized deduction limit | The statute has no gambling carve-out (the old Pease rule had one), and the draft 2026 Schedule A applies it to gambling losses, but the IRS worksheet and instructions were not yet published when this was checked. (checked September 22, 2026) |
| Federal | table games: tax form | The 2026 W-2G instructions name these games only in the exemption for nonresident aliens. The absence of reporting for US players is standard practice rather than an explicit IRS statement. (checked September 22, 2026) |
| Federal | table games: withholding | Same basis as the reporting rule: casino practice, not an explicit IRS statement for US players. (checked September 22, 2026) |
| Federal | poker tournaments: tax form | Contested. The threshold was $5,000 before 2026. The 2026 instructions replaced "$5,000" with "the applicable reporting threshold," and Pub. 1099 (2026) gives $2,000 generally, but no IRS text addresses poker tournaments specifically. (checked September 22, 2026) |
| Federal | poker tournaments: withholding | Pub. 505 (2026) lists poker tournament winnings among those subject to withholding over $5,000, which conflicts with the W-2G instructions. The W-2G instructions are the more specific rule. (checked September 22, 2026) |
| Federal | daily fantasy sports: tax form | The $2,000 1099-MISC threshold is verified. That DFS operators use 1099-MISC and report net winnings is industry practice; no IRS instruction names DFS. IRS Chief Counsel Advice 202042015 treats DFS entry fees as wagers. (checked September 22, 2026) |
| Federal | daily fantasy sports: withholding | Industry practice. No IRS guidance names DFS withholding. (checked September 22, 2026) |
| Alabama | Loss deduction | Alabama has not said whether the 2026 federal 90% limit applies; its itemized deductions come from its own statute. The calculator assumes 90%. (checked September 22, 2026) |
| Alabama | Withholding | Based on finding no such requirement, not on an Alabama DOR statement. (checked September 22, 2026) |
| Alabama | Local tax | No official page confirming this was found. (checked September 22, 2026) |
| Alaska | Local tax | No official page confirming this was found. (checked September 22, 2026) |
| Alaska | Other fact | Only the tax's name on the DOR list was confirmed; that it falls on operators rather than players was not. (checked September 22, 2026) |
| Arizona | Income tax rates | The $8,350/$16,700 standard deduction (Arizona follows the pre-2025 federal amounts) is from the Tax Foundation and was not confirmed with the Arizona DOR. (checked September 22, 2026) |
| Arizona | Lottery exemption | The former subtraction for up to $5,000 of Arizona Lottery winnings was reportedly repealed in 2019; the repealing bill was not read. (checked September 22, 2026) |
| Arizona | Loss deduction | That the federal 90% limit applies is inferred from Arizona updating its IRC conformity to Jan. 1, 2026 without decoupling from it; the DOR has issued no guidance. The calculator only applies state itemizing when you itemize federally, which can understate the Arizona deduction. (checked September 22, 2026) |
| Arizona | Nonresidents | The DOR has published no guidance on sourcing nonresidents' casino or sports-betting winnings. The lottery ruling is a private 1999 ruling; nonresidents who had lottery tax withheld file Form 140NR to recover it. (checked September 22, 2026) |
| Arizona | Local tax | No official page confirming this was found. (checked September 22, 2026) |
| Arkansas | Loss deduction | Arkansas's own statute (A.C.A. 26-51-424) allows losses 'to the extent of gambling winnings' without citing IRC 165(d), so the federal 90% limit appears not to apply. The DFA has not said so for 2026. (checked September 22, 2026) |
| Arkansas | Local tax | No official page confirming this was found. (checked September 22, 2026) |
| California | Income tax rates | These are the 2025 schedules; the FTB had not published 2026 indexed amounts. The personal exemption is a credit ($153 per person for 2025), so it is entered as 0. (checked September 22, 2026) |
| California | Local tax | No official page confirming this was found. (checked September 22, 2026) |
| Colorado | Local tax | No official page confirming this was found. (checked September 22, 2026) |
| Connecticut | Withholding | 'Reportable' is taken as the federal W-2G threshold, $2,000 for 2026. The non-lottery rate is presumably 6.99% but was not found stated, so it has no entry here. (checked September 22, 2026) |
| Connecticut | Local tax | No official page confirming this was found. (checked September 22, 2026) |
| Delaware | Withholding | Based on finding no withholding language in the statute; the Delaware Lottery site was unavailable. (checked September 22, 2026) |
| Delaware | Nonresidents | How Delaware treats nonresidents' casino, lottery and sports-lottery winnings is not addressed explicitly. (checked September 22, 2026) |
| Delaware | Local tax | No official page confirming this was found; the Wilmington site was unavailable. (checked September 22, 2026) |
| District of Columbia | Local tax | Not confirmed on a primary source. (checked September 22, 2026) |
| Florida | Local tax | The DOR FAQ covers state income tax only; the absence of local income tax isn't stated there. (checked September 22, 2026) |
| Georgia | Income tax rates | HB 463 (signed May 11, 2026) cut the rate from 5.19% and raised the standard deduction to $15,000 single / $30,000 joint for 2026. Figures come from the governor's announcement; Georgia DOR guidance wasn't available to confirm them. (checked September 22, 2026) |
| Georgia | Loss deduction | The federal 90% limit should carry over: HB 1199 (2026) conforms Georgia to the Code as of January 1, 2026 with no reported gambling decoupling. That comes from a law-firm summary; the bill text wasn't read. (checked September 22, 2026) |
| Georgia | Withholding | The rule sets the rate at Georgia's top marginal rate; the 4.99% figure for 2026 isn't confirmed by Georgia DOR. (checked September 22, 2026) |
| Georgia | Local tax | The IT-511 booklet has no local tax computation, but doesn't say so outright. (checked September 22, 2026) |
| Hawaii | Income tax rates | The standard deduction ($4,400 single, $8,800 joint) is Tax Foundation's figure and is unconfirmed: Act 46 (2024) scheduled increases. A 13% bracket over $1 million starts in 2027, not 2026. (checked September 22, 2026) |
| Hawaii | Withholding | Inferred from the absence of legal gambling; no Hawaii statute or DOTAX page on gambling withholding was found. (checked September 22, 2026) |
| Hawaii | Nonresidents | Hawaii does tax nonresidents on Hawaii-source income generally; this reflects the absence of legal gambling, not an exemption. (checked September 22, 2026) |
| Hawaii | Local tax | Not stated explicitly in the instructions. (checked September 22, 2026) |
| Idaho | Income tax rates | The zero-bracket thresholds are 2025 amounts; 2026 indexed figures weren't published when Tax Foundation compiled its table. Idaho starts from federal taxable income, so the federal standard deduction is used. (checked September 22, 2026) |
| Idaho | Local tax | Not stated explicitly in the instructions. (checked September 22, 2026) |
| Illinois | Local tax | Not stated explicitly on the cited page. (checked September 22, 2026) |
| Indiana | Withholding | The slot and keno rule is from Departmental Notice #16. The general rule for other payers (IC 6-3-4-8.2) was seen only in search results, and the Hoosier Lottery's current withholding and any county tax withholding weren't confirmed. The rate drops to 2.90% in 2027. (checked September 22, 2026) |
| Kansas | Loss deduction | Inferred from the complete list of Kansas Schedule A lines; the booklet doesn't say it outright. (checked September 22, 2026) |
| Kansas | Withholding | The KW-100 edition read covers wages paid from July 1, 2024; the 5% rate is assumed unchanged for 2026. (checked September 22, 2026) |
| Kansas | Local tax | Not stated explicitly in the booklet. (checked September 22, 2026) |
| Kentucky | Withholding | Kentucky DOR asks payers to report any Kentucky tax withheld on W-2Gs, which suggests some payers withhold, but no rate or threshold rule was found. (checked September 22, 2026) |
| Kentucky | Nonresidents | The statute gives a general sourcing rule and doesn't name gambling; sourcing of online sports-betting winnings wasn't confirmed. (checked September 22, 2026) |
| Kentucky | Local tax | Not verified on an official page. (checked September 22, 2026) |
| Louisiana | Local tax | Not read on an official page. (checked September 22, 2026) |
| Maine | Loss deduction | The 90% limit is inferred from Maine's conformity to the Code as of December 31, 2025 (P.L. 2025, c. 650); MRS hasn't addressed gambling losses directly. The cap on itemized deductions other than medical ($35,250 per MRS's 2025 report) isn't applied by the calculator. (checked September 22, 2026) |
| Maine | Local tax | Not stated on a fetched page. (checked September 22, 2026) |
| Maryland | Loss deduction | The 90% limit is inferred from Maryland's rolling conformity; the Comptroller hasn't addressed gambling losses, and no 2026 decoupling bill was found. (checked September 22, 2026) |
| Maryland | Legal status | The regulator's page doesn't address online casinos, so that status isn't confirmed. (checked September 22, 2026) |
| Massachusetts | Income tax rates | The 2026 surtax threshold comes from a payroll-software article citing DOR Circular M; mass.gov couldn't be read. (checked September 22, 2026) |
| Massachusetts | Local tax | Not stated on a fetched page. (checked September 22, 2026) |
| Minnesota | Loss deduction | Minnesota lets you itemize even if you don't itemize federally; the calculator assumes you follow your federal choice. The 90% limit is inferred from Laws 2026, ch. 128 (Code reference moved to May 1, 2026) with no gambling decoupling found; DOR hasn't confirmed it. (checked September 22, 2026) |
| Minnesota | Local tax | The page doesn't mention local tax. (checked September 22, 2026) |
| Mississippi | Loss deduction | Whether the federal 90% limit applies to non-Mississippi losses isn't addressed by DOR; the calculator assumes it does. (checked September 22, 2026) |
| Mississippi | Withholding | The slot threshold rose from $1,200 to $2,000 on January 1, 2026; the entry uses the federal $2,000 W-2G threshold for other games too and ignores the 300-times-the-wager test. The Mississippi Lottery also withholds state tax from prizes of $600 or more, but its rate wasn't confirmed, so it isn't included. (checked September 22, 2026) |
| Mississippi | Local tax | Not stated on a fetched page. (checked September 22, 2026) |
| Missouri | Withholding | The casino threshold is fixed in state law at $1,200 even though the federal slot reporting threshold rose to $2,000 in 2026. Whether sports wagering is covered wasn't confirmed. (checked September 22, 2026) |
| Missouri | Local tax | St. Louis is confirmed; Kansas City's site couldn't be read. (checked September 22, 2026) |
| Missouri | Legal status | Online casino status is from general knowledge, not a page read. (checked September 22, 2026) |
| Montana | Withholding | No entry is modeled until the 2026 rate is confirmed. Whether Sports Bet Montana winnings over $5,000 are withheld wasn't confirmed. (checked September 22, 2026) |
| Montana | Local tax | Not stated explicitly in the instructions. (checked September 22, 2026) |
| Montana | Legal status | Online casino status is from general knowledge; the on-premises limit for the mobile app wasn't verified. (checked September 22, 2026) |
| Nebraska | Local tax | Not confirmed on an official page. (checked September 22, 2026) |
| Nebraska | Legal status | Casino and online casino status weren't read on a cited page. (checked September 22, 2026) |
| New Hampshire | Withholding | Inferred from the absence of an income tax. (checked September 22, 2026) |
| New Hampshire | Local tax | Not confirmed on a primary source. (checked September 22, 2026) |
| New Hampshire | Legal status | Charitable gaming rooms offer table games and historical horse racing machines. No regulator page was read. (checked September 22, 2026) |
| New Jersey | Withholding | The page doesn't state the trigger for the 3% casino and sportsbook withholding; it's assumed to be when federal withholding applies. The Lottery also withholds 8% if you give no valid taxpayer ID. (checked September 22, 2026) |
| New Jersey | Local tax | Newark and Jersey City payroll taxes are employer taxes, not taxes on winnings (general knowledge). (checked September 22, 2026) |
| New Mexico | Local tax | General knowledge; not read on an official page. (checked September 22, 2026) |
| New York | Loss deduction | That freeze suggests New York allows 100% of losses (up to winnings) rather than 90%, but the Tax Department hasn't said so and some secondary sources say 90%. Bill S7876, which would end the deduction, is still in committee. (checked September 22, 2026) |
| New York | Credit for other states | How the credit applies to gambling winnings taxed by another state wasn't confirmed; the calculator allows it. (checked September 22, 2026) |
| North Carolina | Loss deduction | NCDOR hasn't explicitly confirmed the 90% limit, and whether you can take the deduction without itemizing federally wasn't confirmed. (checked September 22, 2026) |
| North Carolina | Local tax | General knowledge. (checked September 22, 2026) |
| North Dakota | Income tax rates | Bracket thresholds are 2025 amounts; 2026 indexed figures weren't verified. North Dakota starts from federal taxable income, so the federal standard deduction is used. (checked September 22, 2026) |
| North Dakota | Local tax | General knowledge. (checked September 22, 2026) |
| Ohio | Loss deduction | Inferred from the full list of Ohio deductions; the Department of Taxation doesn't say it outright. Some cities may let losses offset winnings for city tax (not verified). (checked September 22, 2026) |
| Ohio | Local tax | That municipal income includes gambling winnings is confirmed in ORC 718.01; the rate range and school district treatment weren't verified. (checked September 22, 2026) |
| Oklahoma | Loss deduction | The 90% limit flows through from federal Schedule A; no Oklahoma decoupling was found, but that was not exhaustively checked. The calculator does not apply the $17,000 cap. (checked September 22, 2026) |
| Oklahoma | Withholding | Charity-game winnings are withheld when federal withholding applies; lottery prizes are subject to state withholding (OAC 429:15-1-10), and racetrack casino winnings are treated as supplemental wages. Secondary sites cite about 4% to 4.75% for lottery prizes; no official rate was found, so the calculator shows no Oklahoma withholding. (checked September 22, 2026) |
| Oklahoma | Local tax | Not separately confirmed on an official page. (checked September 22, 2026) |
| Oregon | Loss deduction | Oregon ties to federal taxable income on a rolling basis, and SB 1507 (2026) disconnected only other provisions, so the 90% limit appears to apply. That comes from news coverage, not DOR guidance, and the bill's final status was not checked. (checked September 22, 2026) |
| Oregon | Nonresidents | Whether nonresidents owe Oregon tax on tribal casino winnings was not confirmed; the calculator treats only lottery prizes as taxable to nonresidents. (checked September 22, 2026) |
| Oregon | Local tax | That these taxes reach gambling winnings is inferred from their Oregon-taxable-income base. The PFA rate rises in 2027. The calculator does not add local tax. (checked September 22, 2026) |
| Pennsylvania | Withholding | The withholding mandate found covers PA Lottery payments only. Schedule T line 7 lets you claim any PA tax withheld shown on a W-2G. (checked September 22, 2026) |
| Pennsylvania | Local tax | The 2026 rate was not found. Local earned income taxes elsewhere in Pennsylvania apply to earned income, not winnings (not confirmed on an official page). (checked September 22, 2026) |
| Rhode Island | Withholding | Covers the RI Lottery (including sports wagering and iGaming), video lottery terminals, casinos and pari-mutuel licensees. The calculator shows no Rhode Island withholding because the rate is unconfirmed. (checked September 22, 2026) |
| Rhode Island | Local tax | Not explicitly stated on an official page. (checked September 22, 2026) |
| South Carolina | Income tax rates | Act 110 (H.4216), signed March 30, 2026, replaced the 0%/3%/6% schedule for 2026 and added a South Carolina Income Adjusted Deduction ($15,000 single, $22,500 head of household, $30,000 joint). The deduction shrinks at higher incomes; the phase-out thresholds are unverified and not modeled. (checked September 22, 2026) |
| South Carolina | Loss deduction | Through 2025, itemized gambling losses flowed through from federal taxable income. SCDOR 2026 forms and guidance were not yet available to confirm. Professional gamblers' losses that reduce federal AGI still flow through. (checked September 22, 2026) |
| South Carolina | Withholding | The statute ties the rate to the maximum individual rate (2024 Act 215 replaced the flat 7%); 5.21% comes from Act 110 and has not been confirmed by SCDOR for prizes. Prizes to spectator-sporting-event participants are exempt. (checked September 22, 2026) |
| South Carolina | Legal status | The absence of tribal casinos in South Carolina was not confirmed on an official source. (checked September 22, 2026) |
| South Dakota | Local tax | Not confirmed on a primary source. (checked September 22, 2026) |
| Tennessee | Withholding | Not confirmed on a primary source. (checked September 22, 2026) |
| Tennessee | Local tax | Not confirmed on a primary source. (checked September 22, 2026) |
| Tennessee | Legal status | The absence of casinos was inferred, not stated on an official page. (checked September 22, 2026) |
| Texas | Legal status | casinos is true for tribal gaming, which was not confirmed on an official source. (checked September 22, 2026) |
| Utah | Withholding | Inferred from the constitutional ban; no Tax Commission statement was found. (checked September 22, 2026) |
| Utah | Nonresidents | Inferred; Utah taxes nonresidents only on Utah-source income. (checked September 22, 2026) |
| Utah | Local tax | Not explicitly stated on an official page. (checked September 22, 2026) |
| Vermont | Income tax rates | Rates unchanged; bracket thresholds and standard deduction are 2025 amounts (2026 indexed amounts not verified). Filers with federal AGI over $150,000 pay the greater of regular tax or 3% of AGI, which the calculator does not model. (checked September 22, 2026) |
| Vermont | Loss deduction | Inferred from the IN-111 structure; secondary sources state it explicitly, but no official page does. Professional gamblers net losses on Schedule C. (checked September 22, 2026) |
| Vermont | Withholding | The Lottery withholds 7.2% from nonresident aliens, which the calculator does not model. The general rule is 32 V.S.A. § 5841. (checked September 22, 2026) |
| Vermont | Credit for other states | The credit is generic; that it covers another state's tax on gambling winnings is assumed, not confirmed. (checked September 22, 2026) |
| Vermont | Local tax | Not confirmed on an official page. (checked September 22, 2026) |
| Vermont | Legal status | No casinos and no online casino is general knowledge, not checked on an official page. (checked September 22, 2026) |
| Virginia | Loss deduction | From 2026 Virginia conforms to the IRC as of December 31, 2025 and generally to the One Big Beautiful Bill Act, so the 90% limit should carry over. No Virginia guidance names § 165(d). (checked September 22, 2026) |
| Virginia | Withholding | Only the Lottery's 4% is confirmed, so the calculator shows no Virginia withholding at casinos or sportsbooks. (checked September 22, 2026) |
| Virginia | Local tax | Not confirmed on an official page. (checked September 22, 2026) |
| Virginia | Legal status | That 2026 online casino bills failed comes from a secondary source. (checked September 22, 2026) |
| Washington | Local tax | Not confirmed on a primary source. (checked September 22, 2026) |
| Washington | Legal status | On-premises-only mobile betting, the state lottery and the absence of online casino were not confirmed on an official page. (checked September 22, 2026) |
| West Virginia | Loss deduction | The calculator applies the subtraction without checking where you won or lost, so it covers only in-state losses in reality. Whether you must itemize federally is unclear (TSD 432 asks for federal Schedule A). SB 400 (2026) keeps 100% of losses for 2026 instead of the federal 90%. (checked September 22, 2026) |
| West Virginia | Nonresidents | Whether nonresidents owe tax on casino or sports winnings was not confirmed, though payers still withhold on them. The calculator shows West Virginia tax and withholding for nonresidents on lottery prizes only. (checked September 22, 2026) |
| West Virginia | Local tax | Some cities charge flat user fees on people who work there; these are not income taxes. Not confirmed on an official page. (checked September 22, 2026) |
| West Virginia | Legal status | Statewide mobile sports betting is general knowledge, not confirmed on an official page. (checked September 22, 2026) |
| Wisconsin | Local tax | Not confirmed on an official page. (checked September 22, 2026) |
| Wisconsin | Legal status | AB 601 (signed April 9, 2026) allows statewide mobile betting through tribal servers once compacts are amended and approved; secondary reports say no app has launched. No online casino is general knowledge. (checked September 22, 2026) |
| Wyoming | Winnings taxable | Not confirmed on a primary source. (checked September 22, 2026) |
| Wyoming | Lottery exemption | Not confirmed on a primary source. (checked September 22, 2026) |
| Wyoming | Loss deduction | Not confirmed on a primary source. (checked September 22, 2026) |
| Wyoming | Withholding | Not confirmed on a primary source. (checked September 22, 2026) |
| Wyoming | Nonresidents | Not confirmed on a primary source. (checked September 22, 2026) |
| Wyoming | Credit for other states | Not confirmed on a primary source. (checked September 22, 2026) |
| Wyoming | Local tax | Not confirmed on a primary source. (checked September 22, 2026) |
| Wyoming | Legal status | Tribal casinos and the absence of online casino were not confirmed on an official page. (checked September 22, 2026) |
Sources
- [1] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [2] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [3] IRS, Rev. Proc. 2025-32 (2026 inflation adjustments) · checked September 22, 2026
- [4] IRS, IR-2025-103: 2026 inflation adjustments · checked September 22, 2026
- [5] 26 U.S. Code § 165(d) (wagering losses) · checked September 22, 2026
- [6] IRS, Publication 505 (2026), Tax Withholding and Estimated Tax · checked September 22, 2026
- [7] IRS, Topic 419, Gambling income and losses · checked September 22, 2026