North Carolina gambling winnings tax calculator
North Carolina taxes gambling winnings as ordinary income at a flat 3.99%.
Updated · 2026 tax rules · How we calculate
You keep
$8,051
Cash at payout
$7,600
Total tax
$1,949
Over-withheld
$451
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $399
- Over-withheld
- $451
- You keep
- $8,051
$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.
North Carolina taxes gambling winnings as ordinary income.
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 $1,949 in federal and state tax: an effective rate of 19.5%.
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 North Carolina taxes gambling winnings
- State income tax
- North Carolina taxes gambling winnings as ordinary income at a flat 3.99%.[1]
- Gambling losses
- From tax year 2025, North Carolina lets you include gambling losses in your North Carolina itemized deductions, up to the amount federal law allows, which for 2026 is 90% of losses, capped at winnings. You don't need to itemize federally, but it only helps if your North Carolina itemized deductions beat the North Carolina standard deduction.[2] How the federal 90% loss rule works
- Withholding
- The NC Lottery withholds 3.99% from prizes of $600 or more. Sportsbooks don't withhold North Carolina tax, so you pay it when you file.[6]
- Nonresidents
- Nonresidents owe North Carolina tax on income from North Carolina sources, which includes gambling in the state.[8]
- Tax paid to other states
- Residents get a credit for income tax paid to another state on income from there, limited to the smaller of the North Carolina tax on it or the tax actually paid.[9]
- Legal gambling
- Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.[10]
Also worth knowing
- Session Law 2026-41 added a gambling-loss itemized deduction retroactive to tax year 2025; before that, North Carolina taxed gross winnings with no loss deduction.[4]
- Online sportsbooks aren't required to withhold North Carolina income tax from winnings (NCDOR FAQ Q11), so bettors often owe the state when they file.[7]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in North Carolina. North Carolina ranks 21st of 51 for what you keep from a $10,000 sports bet, and 20th of 51 for a $1 million lottery prize. See every state ranked.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $2,400 | $1,550 | $399 | $8,051 |
| Casino and slots | $5,000 | $0 | $600 | $200 | $4,201 |
| Table games | $5,000 | $0 | $600 | $200 | $4,201 |
| Poker tournaments | $20,000 | $0 | $3,750 | $798 | $15,452 |
| Lottery | $50,000 | $13,995 | $10,350 | $1,995 | $37,655 |
| Daily fantasy sports | $5,000 | $0 | $600 | $200 | $4,201 |
| Horse racing | $8,000 | $1,920 | $1,110 | $319 | $6,571 |
Questions
- Does North Carolina tax gambling winnings?
- Yes, at a flat 3.99%.[1]
- Can you deduct gambling losses in North Carolina?
- From tax year 2025, North Carolina lets you include gambling losses in your North Carolina itemized deductions, up to the amount federal law allows, which for 2026 is 90% of losses, capped at winnings. You don't need to itemize federally, but it only helps if your North Carolina itemized deductions beat the North Carolina standard deduction.[2]
- Does North Carolina withhold tax from gambling winnings?
- The NC Lottery withholds 3.99% from prizes of $600 or more. Sportsbooks don't withhold North Carolina tax, so you pay it when you file.[6]
- Do nonresidents pay North Carolina tax on gambling winnings?
- Nonresidents owe North Carolina tax on income from North Carolina sources, which includes gambling in the state.[8]
North Carolina by game
Gambling across the border from North Carolina
Win in a neighboring state and both states can tax it: the state you won in as a visitor, and North Carolina as your home state, usually with a credit for the tax you paid there.
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] Session Law 2026-41 (Senate Bill 257), Section 44.2 · checked October 2, 2026
- [3] Session Law 2026-31, Section 12.(a) (IRC reference date updated to July 5, 2025) · checked October 2, 2026
- [4] NCDOR Important Notice: Impact of Recently Enacted Laws on North Carolina Individual and Corporate Income Tax Returns (July 2026) · checked October 2, 2026
- [5] NCDOR 2025 Form D-401 Individual Income Tax Instructions · checked October 2, 2026
- [6] N.C.G.S. 105-163.2B; NCDOR sports wagering FAQ Q11 · checked September 22, 2026
- [7] NCDOR FAQ on Sports Wagering Excise Tax and Winnings/Losses (Apr 2024) · checked September 22, 2026
- [8] N.C.G.S. 105-153.4 · checked September 22, 2026
- [9] N.C.G.S. 105-153.9 · checked September 22, 2026
- [10] Fox Sports, Where is sports betting legal? · checked September 22, 2026
- [11] Office of the Governor of Georgia, Gov. Kemp signs legislation lowering taxes (May 11, 2026) · checked September 22, 2026
- [12] Georgia DOR: Filing Residents, Nonresidents, and Part-Year Residents FAQ · checked September 22, 2026
- [13] SCDOR, Information about H.4216 · checked September 22, 2026
- [14] S.C. Code 59-150-230, Lottery prizes · checked September 22, 2026
- [15] Va. Code § 58.1-302, Income and deductions from Virginia sources · checked September 22, 2026