North Dakota gambling winnings tax calculator
North Dakota taxes gambling winnings as ordinary income at graduated rates from 0% to 2.5%.
Updated · 2026 tax rules · How we calculate
You keep
$8,344
Cash at payout
$7,600
Total tax
$1,656
Over-withheld
$744
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $106
- Over-withheld
- $744
- You keep
- $8,344
$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 Dakota 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 $1,656 in federal and state tax: an effective rate of 16.6%.
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 Dakota taxes gambling winnings
- State income tax
- North Dakota taxes gambling winnings as ordinary income at graduated rates from 0% to 2.5%.[1]Unverified
- Gambling losses
- Because North Dakota starts from federal taxable income, gambling losses lower your North Dakota tax only if you itemize them federally, with the federal 90% limit.[2] How the federal 90% loss rule works
- Withholding
- The North Dakota Lottery withholds 2.5%, the top state rate, from prizes over $5,000. No withholding rule was found for other gambling winnings, so that tax is due when you file.[2]
- Nonresidents
- Nonresidents must include winnings from gambling in North Dakota as North Dakota income (Schedule ND-1NR).[3]
- Tax paid to other states
- Residents get a credit for income tax paid to another state on income from there, prorated to that income.[2]
- Legal gambling
- Sports betting: legal in person only. State lottery: yes. Casinos: yes. Online casino: not legal.[4]
Also worth knowing
- North Dakota Lottery withholding is set by law at the state's top rate and applies to prizes over $5,000 (N.D.C.C. §57-38-59.2).[2]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in North Dakota. North Dakota ranks 10th of 51 for what you keep from a $10,000 sports bet, and 11th 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 | $106 | $8,344 |
| Casino and slots | $5,000 | $0 | $600 | $8 | $4,392 |
| Table games | $5,000 | $0 | $600 | $8 | $4,392 |
| Poker tournaments | $20,000 | $0 | $3,750 | $301 | $15,949 |
| Lottery | $50,000 | $13,250 | $10,350 | $886 | $38,764 |
| Daily fantasy sports | $5,000 | $0 | $600 | $8 | $4,392 |
| Horse racing | $8,000 | $1,920 | $1,110 | $67 | $6,823 |
Questions
- Does North Dakota tax gambling winnings?
- Yes, at graduated rates from 0% to 2.5%.[1]Unverified
- Can you deduct gambling losses in North Dakota?
- Because North Dakota starts from federal taxable income, gambling losses lower your North Dakota tax only if you itemize them federally, with the federal 90% limit.[2]
- Does North Dakota withhold tax from gambling winnings?
- The North Dakota Lottery withholds 2.5%, the top state rate, from prizes over $5,000. No withholding rule was found for other gambling winnings, so that tax is due when you file.[2]
- Do nonresidents pay North Dakota tax on gambling winnings?
- Nonresidents must include winnings from gambling in North Dakota as North Dakota income (Schedule ND-1NR).[3]
North Dakota by game
Gambling across the border from North Dakota
Win in a neighboring state and both states can tax it: the state you won in as a visitor, and North Dakota 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] N.D.C.C. §57-38-30.3 · checked September 22, 2026
- [3] ND Tax Commissioner Guideline - Income Taxation of Nonresident Aliens · checked September 22, 2026
- [4] Fox Sports, Where is sports betting legal? · checked September 22, 2026
- [5] Minnesota Department of Revenue: Minnesota Income Tax Rates and Brackets · checked September 22, 2026
- [6] Minnesota Department of Revenue: Gambling Winnings · checked September 22, 2026
- [7] MCA 15-30-2101 Definitions (Montana source income) · checked September 22, 2026