Sports betting winnings tax in North Dakota
North Dakota taxes sports betting 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.
The rules
- North Dakota tax
- North Dakota taxes sports betting winnings as ordinary income at graduated rates from 0% to 2.5%.[1]Unverified
- Federal tax form
- Sports betting 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 sports betting winnings of more than $5,000, but only when the win is also at least 300 times the wager.[2]
- North Dakota withholding
- No North Dakota withholding requirement for sports betting winnings. Tax is due when you file.[5]
- 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.[5]
- Visitors
- North Dakota taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[6]
- Where to play
- Sports betting in North Dakota: legal in person only. Winnings from a bet placed in another state are taxable here all the same.[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 North Dakota.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $0 | $1,320 |
| $2,000 | No | $0 | $240 | $0 | $1,760 |
| $10,000 | Yes | $2,400 | $1,550 | $106 | $8,344 |
| $100,000 | Yes | $24,000 | $22,114 | $1,861 | $76,025 |
Assumes a $25 stake on this bet, so the 300x test is met at every amount shown.
Questions
- How much is North Dakota tax on sports betting winnings?
- North Dakota taxes sports betting winnings as ordinary income at graduated rates from 0% to 2.5%.[1]Unverified
- Does North Dakota withhold tax from sports betting winnings?
- North Dakota has no withholding requirement for sports betting winnings. Tax is due when you file.[5]
- Do visitors pay North Dakota tax on sports betting winnings?
- North Dakota taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[6]
More for North Dakota
All of North Dakota's gambling tax rules · Sports betting 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] N.D.C.C. §57-38-59.2 · checked September 22, 2026
- [6] ND Tax Commissioner Guideline - Income Taxation of Nonresident Aliens · checked September 22, 2026
- [7] Fox Sports, Where is sports betting legal? · checked September 22, 2026