Sports betting winnings tax in Oregon
Oregon taxes sports betting 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.
The rules
- Oregon tax
- Oregon taxes sports betting winnings as ordinary income at graduated rates from 4.75% to 9.9%.[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]
- Oregon withholding
- No Oregon withholding requirement for sports betting 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 sports betting winnings. Visitors owe tax to their home state instead.[7]Unverified
- Where to play
- Sports betting in Oregon: legal online and in person. Winnings from a bet placed in another state are taxable here all the same.[8]
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 | No | $0 | $240 | $175 | $1,585 |
| $10,000 | Yes | $2,400 | $1,550 | $875 | $7,575 |
| $100,000 | Yes | $24,000 | $22,114 | $9,119 | $68,767 |
Assumes a $25 stake on this bet, so the 300x test is met at every amount shown.
Questions
- How much is Oregon tax on sports betting winnings?
- Oregon taxes sports betting winnings as ordinary income at graduated rates from 4.75% to 9.9%.[1]
- Does Oregon withhold tax from sports betting winnings?
- Oregon has no withholding requirement for sports betting winnings. Tax is due when you file.[5]
- Do visitors pay Oregon tax on sports betting winnings?
- Oregon does not tax nonresidents on sports betting winnings. Visitors owe tax to their home state instead.[7]Unverified
More for Oregon
All of Oregon'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] 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
- [8] American Gaming Association, Oregon Gaming Regulatory Fact Sheet (2025) · checked September 22, 2026