Oregon gambling winnings tax calculator
Oregon taxes gambling winnings as ordinary income at graduated rates from 4.75% to 9.9%.
Updated · 2026 tax rules · How we calculate
You keep
$7,575
Cash at payout
$7,600
Total tax
$2,425
Due when you file
$25
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $875
- Still to pay when you file
- $25
- You keep
- $7,575
$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.
Oregon taxes gambling winnings as ordinary income.
Tax owed ($2,425) minus what was withheld ($2,400). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$10,000 minus $2,425 in federal and state tax: an effective rate of 24.3%.
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 Oregon taxes gambling winnings
- State income tax
- Oregon taxes gambling winnings as ordinary income at graduated rates from 4.75% to 9.9%.[1]
- Lottery prizes
- Oregon Lottery winnings of $600 or less from a single ticket or play are exempt. Larger Oregon Lottery prizes are fully taxable, and other states' lotteries get no exemption.[2]
- Gambling losses
- You can deduct losses only as an itemized deduction on Schedule OR-A, and only up to the gambling winnings Oregon actually taxes.[2]Unverified
- Withholding
- The Oregon Lottery withholds 8% from prize payments of $1,500 or more, for residents and nonresidents alike. Tribal casinos report winnings to Oregon but do not withhold Oregon tax.[3]
- Nonresidents
- Nonresidents owe Oregon tax on taxable Oregon Lottery prizes, including multistate tickets sold in Oregon. The statute does not list tribal casino winnings.[4]Unverified
- Tax paid to other states
- Yes. Residents can claim a credit for income tax paid to another state on income both states tax (credit code 802).[2]
- Local tax
- Portland-area residents may owe these local income taxes, which are based on Oregon taxable income and so include gambling winnings.[5]Unverified
- Legal gambling
- Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.[6]
Also worth knowing
- Oregon Lottery winnings of $600 or less per ticket or play are subtracted on Schedule OR-ASC (code 322); larger wins are fully taxable, not just the amount over $600.[2]
- Gambling losses on Schedule OR-A are limited to gambling winnings taxed by Oregon; if the $600 subtraction removes winnings, losses are reduced by an addition (code 134).[2]
- Enrolled tribal members living in Indian country in Oregon can subtract gambling winnings from Indian gaming centers.[2]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Oregon.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $2,400 | $1,550 | $875 | $7,575 |
| Casino and slots | $5,000 | $0 | $600 | $438 | $3,963 |
| Table games | $5,000 | $0 | $600 | $438 | $3,963 |
| Poker tournaments | $20,000 | $0 | $3,750 | $1,750 | $14,500 |
| Lottery | $50,000 | $16,000 | $10,350 | $4,375 | $35,275 |
| Daily fantasy sports | $5,000 | $0 | $600 | $438 | $3,963 |
| Horse racing | $8,000 | $1,920 | $1,110 | $700 | $6,190 |
Questions
- Does Oregon tax gambling winnings?
- Yes, at graduated rates from 4.75% to 9.9%. Oregon Lottery winnings of $600 or less from a single ticket or play are exempt. Larger Oregon Lottery prizes are fully taxable, and other states' lotteries get no exemption.[1]
- Can you deduct gambling losses in Oregon?
- You can deduct losses only as an itemized deduction on Schedule OR-A, and only up to the gambling winnings Oregon actually taxes.[2]Unverified
- Does Oregon withhold tax from gambling winnings?
- The Oregon Lottery withholds 8% from prize payments of $1,500 or more, for residents and nonresidents alike. Tribal casinos report winnings to Oregon but do not withhold Oregon tax.[3]
- Do nonresidents pay Oregon tax on gambling winnings?
- Nonresidents owe Oregon tax on taxable Oregon Lottery prizes, including multistate tickets sold in Oregon. The statute does not list tribal casino winnings.[4]Unverified
Oregon by game
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] Oregon Publication OR-17 (2025) · checked September 22, 2026
- [3] ORS 316.194, Withholding from lottery prize payments · checked September 22, 2026
- [4] ORS 316.127, Income of nonresident from Oregon sources · checked September 22, 2026
- [5] City of Portland Revenue Division, Personal income taxes · checked September 22, 2026
- [6] American Gaming Association, Oregon Gaming Regulatory Fact Sheet (2025) · checked September 22, 2026