Daily fantasy sports winnings tax in Michigan
Michigan taxes daily fantasy winnings as ordinary income at a flat 4.25%.
Updated · 2026 tax rules · How we calculate
You keep
$4,188
Cash at payout
$5,000
Total tax
$813
Due when you file
$813
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $213
- Still to pay when you file
- $813
- You keep
- $4,188
Daily fantasy sites report net winnings of $2,000 or more for the year on a 1099-MISC.
Daily fantasy sports winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file. If you don't give the payer your Social Security number, 24% backup withholding applies.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 12% bracket.
Michigan taxes gambling winnings as ordinary income.
Tax owed ($813) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $813 in federal and state tax: an effective rate of 16.3%.
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
- Michigan tax
- Michigan taxes daily fantasy winnings as ordinary income at a flat 4.25%.[1]
- Federal tax form
- Daily fantasy sites generally report net winnings of $2,000 or more for the year on Form 1099-MISC, not a W-2G. The 1099-MISC threshold was $600 before 2026.[2]Unverified
- Federal withholding
- Fantasy sites don't withhold federal tax from winnings in practice.[2]Unverified
- Michigan withholding
- No Michigan withholding requirement for daily fantasy winnings. Tax is due when you file.[3]
- Gambling losses
- If you itemize federally, you can deduct the gambling losses you claimed on your federal return, so the 90% limit carries over; losses can't take winnings below zero.[4]
- Visitors
- Michigan does not tax nonresidents on daily fantasy winnings. Visitors owe tax to their home state instead.[5]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Michigan.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $64 | $1,256 |
| $2,000 | Yes | $0 | $240 | $85 | $1,675 |
| $5,000 | Yes | $0 | $600 | $213 | $4,188 |
| $10,000 | Yes | $0 | $1,550 | $425 | $8,025 |
| $100,000 | Yes | $0 | $22,114 | $4,250 | $73,636 |
Questions
- How much is Michigan tax on daily fantasy winnings?
- Michigan taxes daily fantasy winnings as ordinary income at a flat 4.25%.[1]
- Does Michigan withhold tax from daily fantasy winnings?
- Michigan has no withholding requirement for daily fantasy winnings. Tax is due when you file.[3]
- Do visitors pay Michigan tax on daily fantasy winnings?
- Michigan does not tax nonresidents on daily fantasy winnings. Visitors owe tax to their home state instead.[5]
More for Michigan
All of Michigan's gambling tax rules · Daily fantasy sports in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms 1099-MISC and 1099-NEC (2026) · checked September 22, 2026
- [3] MCL 206.703(6)-(8) · checked September 22, 2026
- [4] MCL 206.30(1)(bb) · checked September 22, 2026
- [5] MCL 206.110(2)(c)-(d) · checked September 22, 2026