New York gambling winnings tax calculator

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, up to your winnings, as a New York itemized deduction, even if you don't itemize federally. New York uses the federal rules as of 2017, so 100% of losses count, not 90%. Itemized deductions shrink above $100,000 of New York AGI, and above $1 million only charitable gifts count, so gambling losses are lost.^[2] How the federal 90% loss rule works

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.^[6]

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.^[7]

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.^[8]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.^[9]

Legal gambling

Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.^[11]

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.^[7]
• Senate bill S7876 would reduce New York's itemized deduction for gambling losses to zero; it remains in committee.^[5]

Examples by game

For a single filer with $60,000 of other income and no gambling losses, living and winning in New York. New York ranks 40th of 51 for what you keep from a $10,000 sports bet, and 42nd of 51 for a $1 million lottery prize, counting state tax only (New York's local income taxes aren't included). See every state ranked.

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, up to your winnings, as a New York itemized deduction, even if you don't itemize federally. New York uses the federal rules as of 2017, so 100% of losses count, not 90%. Itemized deductions shrink above $100,000 of New York AGI, and above $1 million only charitable gifts count, so gambling losses are lost.^[2]

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.^[6]

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.^[7]

Gambling across the border from New York

Win in a neighboring state and both states can tax it: the state you won in as a visitor, and New York as your home state, usually with a credit for the tax you paid there.