Sports betting winnings tax in Ohio
Ohio taxes sports betting winnings as ordinary income at graduated rates from 0% to 2.75%.
On a $10,000 sports betting win, $2,675 is withheld at payout. The tax comes to $1,825 ($1,550 federal and $275 Ohio), and you get $850 back when you file, so you keep $8,175. That's for a single filer with $60,000 of other income and no gambling losses.
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.
The rules
- Ohio tax
- Ohio taxes sports betting winnings as ordinary income at graduated rates from 0% to 2.75%.[1]
- 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]
- Ohio withholding
- Ohio withholds 2.75% on sports betting winnings of $2,000 or more.[5]
- 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.[6] How the federal 90% loss rule works
- Visitors
- Ohio taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[7]
- Where to play
- Sports betting in Ohio: legal online and in person. Winnings from a bet placed in another state are taxable here all the same.[9]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Ohio.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $41 | $1,279 |
| $2,000 | No | $55 | $240 | $55 | $1,705 |
| $10,000 | Yes | $2,675 | $1,550 | $275 | $8,175 |
| $100,000 | Yes | $26,750 | $22,114 | $2,750 | $75,136 |
Assumes a $25 stake on this bet, so the 300x test is met at every amount shown.
Records to keep for sports betting winnings
Winnings are your payout minus your stake. A W-2G also needs the win to be at least 300 times the stake, which in practice means a long-odds parlay or futures bet.
Losses only count if you can prove them. The IRS doesn't list records specific to sports betting, so its general gambling diary and the paperwork behind it are what count: keeping gambling records the IRS will accept.
Questions
- How much is Ohio tax on sports betting winnings?
- Ohio taxes sports betting winnings as ordinary income at graduated rates from 0% to 2.75%.[1]
- Does Ohio withhold tax from sports betting winnings?
- Ohio withholds 2.75% on sports betting winnings of $2,000 or more.[5]
- Do visitors pay Ohio tax on sports betting winnings?
- Ohio taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[7]
More for Ohio
All of Ohio'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] Ohio Rev. Code 5747.063 (as amended by HB 96, 136th GA) · checked September 22, 2026
- [6] Ohio Department of Taxation FAQ: Income - General Information · checked October 2, 2026
- [7] 2025 Ohio IT 1040 / SD 100 Instructions · checked October 2, 2026
- [8] Ohio Revised Code 5747.01 · checked October 2, 2026
- [9] Fox Sports, Where is sports betting legal? · checked September 22, 2026