Skip to content
WinningsTax

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

$
$
$
$
More options
$

You keep

$8,344

Cash at payout

$7,600

Total tax

$1,656

Over-withheld

$744

Form W-2G
Yes

$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.

Federal withholding at payout
$2,400

The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.

Federal tax on the winnings
$1,550

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.

State tax
$106

North Dakota taxes gambling winnings as ordinary income.

Over-withheld
$744

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.

You keep
$8,344

$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]
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.

GameWonWithheldFederal taxState taxYou 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

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] N.D.C.C. §57-38-30.3 · checked September 22, 2026
  3. [3] ND Tax Commissioner Guideline - Income Taxation of Nonresident Aliens · checked September 22, 2026
  4. [4] Fox Sports, Where is sports betting legal? · checked September 22, 2026