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WinningsTax

Sports betting winnings tax in Nebraska

Nebraska taxes sports betting winnings as ordinary income at graduated rates from 2.46% to 4.55%.

Updated · 2026 tax rules · How we calculate

$
$
$
$
More options
$

You keep

$7,995

Cash at payout

$7,250

Total tax

$2,005

Over-withheld

$745

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
$455

Nebraska taxes gambling winnings as ordinary income.

Nebraska withholding at payout
$350

Nebraska requires the payer to hold back 3.5% for state tax.

Over-withheld
$745

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
$7,995

$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.

The rules

Nebraska tax
Nebraska taxes sports betting winnings as ordinary income at graduated rates from 2.46% to 4.55%.[1]
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]
Nebraska withholding
Nebraska withholds 3.5% whenever federal tax is withheld.[5]
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.[6]
Visitors
Nebraska taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[7]
Where to play
Sports betting in Nebraska: legal in person only. Winnings from a bet placed in another state are taxable here all the same.[8]Unverified

What you keep at different amounts

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

WonW-2GWithheldFederal taxState taxYou keep
$1,500No$0$180$68$1,252
$2,000No$0$240$91$1,669
$10,000Yes$2,750$1,550$455$7,995
$100,000Yes$27,500$22,114$4,550$73,336

Assumes a $25 stake on this bet, so the 300x test is met at every amount shown.

Questions

How much is Nebraska tax on sports betting winnings?
Nebraska taxes sports betting winnings as ordinary income at graduated rates from 2.46% to 4.55%.[1]
Does Nebraska withhold tax from sports betting winnings?
Nebraska withholds 3.5% whenever federal tax is withheld.[5]
Do visitors pay Nebraska tax on sports betting winnings?
Nebraska taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[7]

More for Nebraska

All of Nebraska's gambling tax rules · Sports betting in every state

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
  3. [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
  4. [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
  5. [5] Nebraska Circular EN (2026), Gambling Winnings From Nebraska Sources · checked September 22, 2026
  6. [6] 2025 Nebraska Individual Income Tax Booklet (Form 1040N lines 7-9) · checked September 22, 2026
  7. [7] Nebraska DOR Regulations Chapter 22 (REG-22-003.01I) · checked September 22, 2026
  8. [8] Fox Sports, Where is sports betting legal? · checked September 22, 2026