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WinningsTax

New York gambling winnings tax calculator

New York taxes gambling winnings as ordinary income at graduated rates from 3.9% to 10.9%.

Updated · 2026 tax rules · How we calculate

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$
$
$
More options
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You keep

$7,910

Cash at payout

$6,510

Total tax

$2,090

Over-withheld

$1,400

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
$540

New York taxes gambling winnings as ordinary income.

New York withholding at payout
$1,090

New York requires the payer to hold back 10.9% for state tax.

Over-withheld
$1,400

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
$7,910

$10,000 minus $2,090 in federal and state tax: an effective rate of 20.9%.

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 New York taxes gambling winnings

State income tax
New York taxes gambling winnings as ordinary income at graduated rates from 3.9% to 10.9%.[1]
Gambling losses
You can deduct gambling losses only as a New York itemized deduction, which follows federal rules as they stood before the 2017 tax law.[2]Unverified
Withholding
Payers withhold at New York's top rate (10.9%), with no allowance for deductions, from New York Lottery prizes over $5,000 and from other New York winnings subject to federal withholding.[3]
Nonresidents
Nonresidents owe New York tax only on New York Lottery prizes over $5,000 and other winnings over $5,000 from wagers placed in New York.[4]
Tax paid to other states
Residents can claim a credit (Form IT-112-R) for tax paid to another state on income sourced there, but the Tax Department says gambling and lottery winnings are typically excluded, so check your case.[5]Unverified
Local tax
New York City and Yonkers residents pay city tax on gambling and lottery winnings: NYC at 3.078% to 3.876%, and Yonkers as a 16.75% surcharge on state tax.[6]
Legal gambling
Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.[8]

Also worth knowing

  • Nonresidents owe New York tax on gambling only when they win more than $5,000 on a wager placed in New York, or more than $5,000 from the New York Lottery.[4]
  • Senate bill S7876 would reduce New York's itemized deduction for gambling losses to zero; it remains in committee.[9]

Examples by game

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

GameWonWithheldFederal taxState taxYou keep
Sports betting$10,000$3,490$1,550$540$7,910
Casino and slots$5,000$0$600$270$4,130
Table games$5,000$0$600$270$4,130
Poker tournaments$20,000$0$3,750$1,080$15,170
Lottery$50,000$17,450$10,350$2,807$36,843
Daily fantasy sports$5,000$0$600$270$4,130
Horse racing$8,000$2,792$1,110$432$6,458

Questions

Does New York tax gambling winnings?
Yes, at graduated rates from 3.9% to 10.9%.[1]
Can you deduct gambling losses in New York?
You can deduct gambling losses only as a New York itemized deduction, which follows federal rules as they stood before the 2017 tax law.[2]Unverified
Does New York withhold tax from gambling winnings?
Payers withhold at New York's top rate (10.9%), with no allowance for deductions, from New York Lottery prizes over $5,000 and from other New York winnings subject to federal withholding.[3]
Do nonresidents pay New York tax on gambling winnings?
Nonresidents owe New York tax only on New York Lottery prizes over $5,000 and other winnings over $5,000 from wagers placed in New York.[4]

New York by game

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] NY Tax Law §615 · checked September 22, 2026
  3. [3] NY Tax Law §671(b) · checked September 22, 2026
  4. [4] NY Tax Law §631 · checked September 22, 2026
  5. [5] NY DTF - Resident credit · checked September 22, 2026
  6. [6] NY DTF, Instructions for Form IT-201 · checked September 22, 2026
  7. [7] NY DTF Publication 140-W · checked September 22, 2026
  8. [8] New York State Gaming Commission · checked September 22, 2026
  9. [9] NY Senate Bill S7876 (2025-2026) · checked September 22, 2026