Daily fantasy sports winnings tax in North Carolina
North Carolina taxes daily fantasy winnings as ordinary income at a flat 3.99%.
Updated · 2026 tax rules · How we calculate
You keep
$4,201
Cash at payout
$5,000
Total tax
$800
Due when you file
$800
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $200
- Still to pay when you file
- $800
- You keep
- $4,201
Daily fantasy sites report net winnings of $2,000 or more for the year on a 1099-MISC.
Daily fantasy sports winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file. If you don't give the payer your Social Security number, 24% backup withholding applies.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 12% bracket.
North Carolina taxes gambling winnings as ordinary income.
Tax owed ($800) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $800 in federal and state tax: an effective rate of 16%.
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
- North Carolina tax
- North Carolina taxes daily fantasy winnings as ordinary income at a flat 3.99%.[1]
- Federal tax form
- Daily fantasy sites generally report net winnings of $2,000 or more for the year on Form 1099-MISC, not a W-2G. The 1099-MISC threshold was $600 before 2026.[2]Unverified
- Federal withholding
- Fantasy sites don't withhold federal tax from winnings in practice.[2]Unverified
- North Carolina withholding
- No North Carolina withholding requirement for daily fantasy winnings. Tax is due when you file.[3]
- Gambling losses
- A 2026 law (S.L. 2026-41) created a North Carolina itemized deduction for gambling losses, from tax year 2025, capped at the amount federal law allows, so the 90% limit should apply.[5]Unverified
- Visitors
- North Carolina taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[6]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in North Carolina.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $60 | $1,260 |
| $2,000 | Yes | $0 | $240 | $80 | $1,680 |
| $5,000 | Yes | $0 | $600 | $200 | $4,201 |
| $10,000 | Yes | $0 | $1,550 | $399 | $8,051 |
| $100,000 | Yes | $0 | $22,114 | $3,990 | $73,896 |
Questions
- How much is North Carolina tax on daily fantasy winnings?
- North Carolina taxes daily fantasy winnings as ordinary income at a flat 3.99%.[1]
- Does North Carolina withhold tax from daily fantasy winnings?
- North Carolina has no withholding requirement for daily fantasy winnings. Tax is due when you file.[3]
- Do visitors pay North Carolina tax on daily fantasy winnings?
- North Carolina taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[6]
More for North Carolina
All of North Carolina's gambling tax rules · Daily fantasy sports in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms 1099-MISC and 1099-NEC (2026) · checked September 22, 2026
- [3] N.C.G.S. 105-163.2B; NCDOR sports wagering FAQ Q11 · checked September 22, 2026
- [4] NCDOR FAQ on Sports Wagering Excise Tax and Winnings/Losses (Apr 2024) · checked September 22, 2026
- [5] NCDOR Important Notice: Impact of Recently Enacted Laws (July 2026) · checked September 22, 2026
- [6] N.C.G.S. 105-153.4 · checked September 22, 2026