Nebraska gambling winnings tax calculator
Nebraska taxes gambling winnings as ordinary income at graduated rates from 2.46% to 4.55%.
Updated · 2026 tax rules · How we calculate
You keep
$7,995
Cash at payout
$7,250
Total tax
$2,005
Over-withheld
$745
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $455
- Nebraska withholding at payout
- $350
- Over-withheld
- $745
- You keep
- $7,995
$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.
Nebraska taxes gambling winnings as ordinary income.
Nebraska requires the payer to hold back 3.5% 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 $2,005 in federal and state tax: an effective rate of 20.1%.
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 Nebraska taxes gambling winnings
- State income tax
- Nebraska taxes gambling winnings as ordinary income at graduated rates from 2.46% to 4.55%.[1]
- Gambling losses
- You can deduct gambling losses only if you itemize federally: Nebraska uses your federal Schedule A total (minus state and local income taxes), so the 90% limit carries over.[2]
- Withholding
- Payers withhold a flat 3.5% from Nebraska gambling winnings that are subject to federal withholding, for residents and nonresidents.[3]
- Nonresidents
- Nonresidents owe Nebraska tax on Nebraska Lottery and other licensed Nebraska game winnings, and on other gambling winnings when the wager was placed in Nebraska.[4]
- Tax paid to other states
- Residents can claim a credit on Schedule II for income tax paid to another state, limited to the lesser of the tax paid or the Nebraska tax on that income. Attach the other state's return.[2]
- Legal gambling
- Sports betting: legal in person only. State lottery: yes. Casinos: yes. Online casino: not legal.[5]Unverified
Also worth knowing
- Nebraska's gambling withholding rate dropped to 3.5% for winnings paid on or after January 1, 2026, from 5% in earlier years.[3]
- Winnings from the Nebraska Lottery, bingo, pickle cards, raffles and county or city lotteries are always Nebraska-source income; other gambling counts when the wager is placed in Nebraska.[4]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Nebraska.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $2,750 | $1,550 | $455 | $7,995 |
| Casino and slots | $5,000 | $0 | $600 | $228 | $4,173 |
| Table games | $5,000 | $0 | $600 | $228 | $4,173 |
| Poker tournaments | $20,000 | $0 | $3,750 | $910 | $15,340 |
| Lottery | $50,000 | $13,750 | $10,350 | $2,275 | $37,375 |
| Daily fantasy sports | $5,000 | $0 | $600 | $228 | $4,173 |
| Horse racing | $8,000 | $2,200 | $1,110 | $364 | $6,526 |
Questions
- Does Nebraska tax gambling winnings?
- Yes, at graduated rates from 2.46% to 4.55%.[1]
- Can you deduct gambling losses in Nebraska?
- You can deduct gambling losses only if you itemize federally: Nebraska uses your federal Schedule A total (minus state and local income taxes), so the 90% limit carries over.[2]
- Does Nebraska withhold tax from gambling winnings?
- Payers withhold a flat 3.5% from Nebraska gambling winnings that are subject to federal withholding, for residents and nonresidents.[3]
- Do nonresidents pay Nebraska tax on gambling winnings?
- Nonresidents owe Nebraska tax on Nebraska Lottery and other licensed Nebraska game winnings, and on other gambling winnings when the wager was placed in Nebraska.[4]
Nebraska by game
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] 2025 Nebraska Individual Income Tax Booklet (Form 1040N lines 7-9) · checked September 22, 2026
- [3] Nebraska Circular EN (2026), Gambling Winnings From Nebraska Sources · checked September 22, 2026
- [4] Nebraska DOR Regulations Chapter 22 (REG-22-003.01I) · checked September 22, 2026
- [5] Fox Sports, Where is sports betting legal? · checked September 22, 2026