Horse racing winnings tax in New York
New York taxes horse racing winnings as ordinary income at graduated rates from 3.9% to 10.9%.
Updated · 2026 tax rules · How we calculate
You keep
$6,458
Cash at payout
$5,208
Total tax
$1,542
Over-withheld
$1,250
- Form W-2G
- Yes
- Federal withholding at payout
- $1,920
- Federal tax on the winnings
- $1,110
- State tax
- $432
- New York withholding at payout
- $872
- Over-withheld
- $1,250
- You keep
- $6,458
$8,000 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.
New York taxes gambling winnings as ordinary income.
New York requires the payer to hold back 10.9% 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.
$8,000 minus $1,542 in federal and state tax: an effective rate of 19.3%.
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
- New York tax
- New York taxes horse racing winnings as ordinary income at graduated rates from 3.9% to 10.9%.[1]
- Federal tax form
- Horse racing (pari-mutuel) 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 pari-mutuel winnings of more than $5,000, but only when the win is also at least 300 times the wager.[2]
- New York withholding
- New York withholds 10.9% whenever federal tax is withheld.[5]
- 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.[6]Unverified
- Visitors
- New York taxes nonresidents on horse racing winnings over $5,000 won there, so visitors may need to file a nonresident return.[7]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in New York.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $81 | $1,239 |
| $2,000 | Yes | $0 | $240 | $108 | $1,652 |
| $8,000 | Yes | $2,792 | $1,110 | $432 | $6,458 |
| $10,000 | Yes | $3,490 | $1,550 | $540 | $7,910 |
| $100,000 | Yes | $34,900 | $22,114 | $5,757 | $72,129 |
Assumes a $2 bet amount, so the 300x test is met at every amount shown.
Questions
- How much is New York tax on horse racing winnings?
- New York taxes horse racing winnings as ordinary income at graduated rates from 3.9% to 10.9%.[1]
- Does New York withhold tax from horse racing winnings?
- New York withholds 10.9% whenever federal tax is withheld.[5]
- Do visitors pay New York tax on horse racing winnings?
- New York taxes nonresidents on horse racing winnings over $5,000 won there, so visitors may need to file a nonresident return.[7]
More for New York
All of New York's gambling tax rules · Horse racing in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
- [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [5] NY Tax Law §671(b) · checked September 22, 2026
- [6] NY Tax Law §615 · checked September 22, 2026
- [7] NY Tax Law §631 · checked September 22, 2026