Ohio gambling winnings tax calculator
Ohio taxes gambling winnings as ordinary income at graduated rates from 0% to 2.75%.
Updated · 2026 tax rules · How we calculate
You keep
$8,175
Cash at payout
$7,325
Total tax
$1,825
Over-withheld
$850
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $275
- Ohio withholding at payout
- $275
- Over-withheld
- $850
- You keep
- $8,175
$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.
Ohio taxes gambling winnings as ordinary income.
Ohio requires the payer to hold back 2.75% for state tax.
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 $1,825 in federal and state tax: an effective rate of 18.3%.
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 Ohio taxes gambling winnings
- State income tax
- Ohio taxes gambling winnings as ordinary income at graduated rates from 0% to 2.75%.[1]
- Gambling losses
- Ohio has no deduction for gambling losses: it starts from federal AGI, has no itemized deductions, and its adjustments include no gambling-loss line.[2]Unverified
- Withholding
- Casinos, sportsbooks, the Ohio Lottery and video lottery agents withhold 2.75% for 2026 from winnings that require a W-2G, for residents and nonresidents. Casinos and sportsbooks also withhold city tax.[3]
- Nonresidents
- Nonresidents owe Ohio tax on Ohio Lottery prizes, winnings paid by Ohio casinos and sports bets placed in Ohio, even if they live in a reciprocity state.[2]
- Tax paid to other states
- Residents can claim the resident credit (IT RC) for income tax paid to another state on income earned there; it doesn't apply to states without an income tax.[2]
- Local tax
- Ohio cities can tax gambling winnings, and casinos and sportsbooks withhold city tax at the rate of the city where they're located.[4]Unverified
- Legal gambling
- Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.[6]
Also worth knowing
- Ohio casinos and sportsbooks must also withhold municipal income tax at the rate of the city where the facility is located (ORC 718.031).[4]
- Residents of Ohio's reciprocity states (Indiana, Kentucky, Michigan, Pennsylvania, West Virginia) must still report Ohio Lottery, casino and sports-betting winnings to Ohio.[2]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Ohio.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $2,675 | $1,550 | $275 | $8,175 |
| Casino and slots | $5,000 | $138 | $600 | $138 | $4,263 |
| Table games | $5,000 | $0 | $600 | $138 | $4,263 |
| Poker tournaments | $20,000 | $550 | $3,750 | $550 | $15,700 |
| Lottery | $50,000 | $13,375 | $10,350 | $1,375 | $38,275 |
| Daily fantasy sports | $5,000 | $0 | $600 | $138 | $4,263 |
| Horse racing | $8,000 | $1,920 | $1,110 | $220 | $6,670 |
Questions
- Does Ohio tax gambling winnings?
- Yes, at graduated rates from 0% to 2.75%.[1]
- Can you deduct gambling losses in Ohio?
- Ohio has no deduction for gambling losses: it starts from federal AGI, has no itemized deductions, and its adjustments include no gambling-loss line.[2]Unverified
- Does Ohio withhold tax from gambling winnings?
- Casinos, sportsbooks, the Ohio Lottery and video lottery agents withhold 2.75% for 2026 from winnings that require a W-2G, for residents and nonresidents. Casinos and sportsbooks also withhold city tax.[3]
- Do nonresidents pay Ohio tax on gambling winnings?
- Nonresidents owe Ohio tax on Ohio Lottery prizes, winnings paid by Ohio casinos and sports bets placed in Ohio, even if they live in a reciprocity state.[2]
Ohio by game
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] 2025 Ohio IT 1040 Instructions (Schedule of Adjustments) · checked September 22, 2026
- [3] Ohio Rev. Code 5747.063 (as amended by HB 96, 136th GA) · checked September 22, 2026
- [4] Ohio Rev. Code 718.031 · checked September 22, 2026
- [5] Ohio Rev. Code 718.01 · checked September 22, 2026
- [6] Fox Sports, Where is sports betting legal? · checked September 22, 2026