Horse racing winnings tax in Oregon
Oregon taxes horse racing winnings as ordinary income at graduated rates from 4.75% to 9.9%.
Updated · 2026 tax rules · How we calculate
You keep
$6,190
Cash at payout
$6,080
Total tax
$1,810
Over-withheld
$110
- Form W-2G
- Yes
- Federal withholding at payout
- $1,920
- Federal tax on the winnings
- $1,110
- State tax
- $700
- Over-withheld
- $110
- You keep
- $6,190
$8,000 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.
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.
$8,000 minus $1,810 in federal and state tax: an effective rate of 22.6%.
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
- Oregon tax
- Oregon taxes horse racing winnings as ordinary income at graduated rates from 4.75% to 9.9%.[1]
- Federal tax form
- Horse racing (pari-mutuel) 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 pari-mutuel winnings of more than $5,000, but only when the win is also at least 300 times the wager.[2]
- Oregon withholding
- No Oregon withholding requirement for horse racing winnings. Tax is due when you file.[5]
- 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.[6]Unverified
- Visitors
- Oregon does not tax nonresidents on horse racing winnings. Visitors owe tax to their home state instead.[7]Unverified
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Oregon.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $131 | $1,189 |
| $2,000 | Yes | $0 | $240 | $175 | $1,585 |
| $8,000 | Yes | $1,920 | $1,110 | $700 | $6,190 |
| $10,000 | Yes | $2,400 | $1,550 | $875 | $7,575 |
| $100,000 | Yes | $24,000 | $22,114 | $9,119 | $68,767 |
Assumes a $2 bet amount, so the 300x test is met at every amount shown.
Questions
- How much is Oregon tax on horse racing winnings?
- Oregon taxes horse racing winnings as ordinary income at graduated rates from 4.75% to 9.9%.[1]
- Does Oregon withhold tax from horse racing winnings?
- Oregon has no withholding requirement for horse racing winnings. Tax is due when you file.[5]
- Do visitors pay Oregon tax on horse racing winnings?
- Oregon does not tax nonresidents on horse racing winnings. Visitors owe tax to their home state instead.[7]Unverified
More for Oregon
All of Oregon's gambling tax rules · Horse racing 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] ORS 316.194, Withholding from lottery prize payments · checked September 22, 2026
- [6] Oregon Publication OR-17 (2025) · checked September 22, 2026
- [7] ORS 316.127, Income of nonresident from Oregon sources · checked September 22, 2026