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. Its income tax starts from federal adjusted gross income, and the Department of Taxation says federal itemized deductions such as gambling losses can't be deducted on the Ohio return.[2] How the federal 90% loss rule works
- 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.[5]
- 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.[3]
- 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.[3]
- 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.[6]Unverified
- Legal gambling
- Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.[8]
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).[6]
- Residents of Ohio's reciprocity states (Indiana, Kentucky, Michigan, Pennsylvania, West Virginia) must still report Ohio Lottery, casino and sports-betting winnings to Ohio.[3]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Ohio. Ohio ranks 12th of 51 for what you keep from a $10,000 sports bet, and 13th of 51 for a $1 million lottery prize, counting state tax only (Ohio's local income taxes aren't included). See every state ranked.
| 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. Its income tax starts from federal adjusted gross income, and the Department of Taxation says federal itemized deductions such as gambling losses can't be deducted on the Ohio return.[2]
- 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.[5]
- 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.[3]
Ohio by game
Gambling across the border from Ohio
Win in a neighboring state and both states can tax it: the state you won in as a visitor, and Ohio 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] Ohio Department of Taxation FAQ: Income - General Information · checked October 2, 2026
- [3] 2025 Ohio IT 1040 / SD 100 Instructions · checked October 2, 2026
- [4] Ohio Revised Code 5747.01 · checked October 2, 2026
- [5] Ohio Rev. Code 5747.063 (as amended by HB 96, 136th GA) · checked September 22, 2026
- [6] Ohio Rev. Code 718.031 · checked September 22, 2026
- [7] Ohio Rev. Code 718.01 · checked September 22, 2026
- [8] Fox Sports, Where is sports betting legal? · checked September 22, 2026
- [9] Indiana DOR Departmental Notice #1 (2026) · checked September 22, 2026
- [10] Indiana IT-40PNR Booklet 2025 · checked September 22, 2026
- [11] KRS 141.020 Levy of income tax on individuals · checked September 22, 2026
- [12] MCL 206.110(2)(c)-(d) · checked September 22, 2026
- [13] PA PIT Guide, Gambling and Lottery Winnings (PDF) · checked September 22, 2026
- [14] West Virginia Tax Division, Personal Income Tax Reduction Bill · checked September 22, 2026
- [15] W. Va. Code § 11-21-32 · checked September 22, 2026
- [16] WV TSD 432, Gambling Withholding and Losses (Rev. June 2026) · checked September 22, 2026