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WinningsTax

Pennsylvania gambling winnings tax calculator

Pennsylvania taxes gambling winnings as ordinary income at a flat 3.07%.

Updated · 2026 tax rules · How we calculate

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More options
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You keep

$8,143

Cash at payout

$7,600

Total tax

$1,857

Over-withheld

$543

Form W-2G
Yes

$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.

Federal withholding at payout
$2,400

The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.

Federal tax on the winnings
$1,550

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.

State tax
$307

Pennsylvania taxes gambling winnings as ordinary income.

Over-withheld
$543

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.

You keep
$8,143

$10,000 minus $1,857 in federal and state tax: an effective rate of 18.6%.

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.

How Pennsylvania taxes gambling winnings

State income tax
Pennsylvania taxes gambling winnings as ordinary income at a flat 3.07%.[1]
Gambling losses
You subtract the documented cost of your wagers for the year from your total winnings on Schedule T, without itemizing. The result can't go below zero or offset other income.[2]
Withholding
The PA Lottery withholds 3.07% Pennsylvania tax whenever federal withholding is required. Whether casinos and sportsbooks must withhold Pennsylvania tax was not confirmed.[3]Unverified
Nonresidents
Yes. Nonresidents are taxed on winnings from wagers placed or gambling done in Pennsylvania and on PA Lottery prizes, including Powerball and Mega Millions tickets bought from a PA vendor.[3]
Tax paid to other states
Yes. Residents claim the credit on Schedule G-L, which has a line for gambling and lottery winnings taxed by another state.[4]
Local tax
Philadelphia residents owe the School Income Tax on net gambling gains, including PA Lottery cash prizes.[5]Unverified
Legal gambling
Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: legal.[6]

Also worth knowing

  • Losses in the gambling class cannot offset other classes of Pennsylvania income, and spouses cannot use each other's wagering costs on Schedule T.[2]
  • Anyone who files a federal Form W-2G for Pennsylvania-source winnings must also file a copy with the PA Department of Revenue (Act 46 of 2003).[3]
  • Multistate lottery prizes on tickets bought from a PA vendor are Pennsylvania-source; tickets bought in another state are not Pennsylvania-source for nonresidents.[3]

Examples by game

For a single filer with $60,000 of other income and no gambling losses, living and winning in Pennsylvania.

GameWonWithheldFederal taxState taxYou keep
Sports betting$10,000$2,400$1,550$307$8,143
Casino and slots$5,000$0$600$154$4,247
Table games$5,000$0$600$154$4,247
Poker tournaments$20,000$0$3,750$614$15,636
Lottery$50,000$13,535$10,350$1,535$38,115
Daily fantasy sports$5,000$0$600$154$4,247
Horse racing$8,000$1,920$1,110$246$6,644

Questions

Does Pennsylvania tax gambling winnings?
Yes, at a flat 3.07%.[1]
Can you deduct gambling losses in Pennsylvania?
You subtract the documented cost of your wagers for the year from your total winnings on Schedule T, without itemizing. The result can't go below zero or offset other income.[2]
Does Pennsylvania withhold tax from gambling winnings?
The PA Lottery withholds 3.07% Pennsylvania tax whenever federal withholding is required. Whether casinos and sportsbooks must withhold Pennsylvania tax was not confirmed.[3]Unverified
Do nonresidents pay Pennsylvania tax on gambling winnings?
Yes. Nonresidents are taxed on winnings from wagers placed or gambling done in Pennsylvania and on PA Lottery prizes, including Powerball and Mega Millions tickets bought from a PA vendor.[3]

Pennsylvania by game

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] 2025 PA-40 Schedule T and instructions · checked September 22, 2026
  3. [3] PA PIT Guide, Gambling and Lottery Winnings (PDF) · checked September 22, 2026
  4. [4] PA Schedule G-L, Resident Credit for Taxes Paid · checked September 22, 2026
  5. [5] City of Philadelphia, School Income Tax · checked September 22, 2026
  6. [6] American Gaming Association, Pennsylvania Gaming Regulatory Fact Sheet (2025) · checked September 22, 2026