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WinningsTax

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WinningsTax works out the federal and state tax on gambling winnings in every state, from the published rules, with a source for every figure. Writing about gambling and taxes? Everything here is free to cite.

Updated · 2026 tax rules · How we calculate

Key figures for 2026

$2,000The new W-2G threshold

The W-2G threshold is $2,000 for payments made in 2026, up from $600, $1,200 or $1,500 depending on the game. It is indexed for inflation from 2027, rounded to the nearest $100.[1]

What a W-2G is and who gets one

90%Of gambling losses deductible, down from 100%

From 2026, a bettor who breaks even still owes tax. For a single filer with $60,000 of wages who won $50,000 and lost $50,000 betting on sports, that's $3,992 of federal tax, $1,100 of it from the 90% limit.[4]

What breaking even costs in every state

24%Withheld at payout, against a top rate of 37%

Payers withhold 24% of winnings (minus the wager) when they are more than $5,000 and the game is subject to withholding. The $5,000 threshold did not change for 2026. Slot jackpots have none withheld at all, so the whole tax is due at filing.[1]

Why withholding is rarely what you owe

$103,177Gap between states on a $1 million lottery prize

Hawaii takes $103,177 in state tax; 10 states take nothing. On a $10,000 sports bet, residents keep between $7,575 (Oregon) and $8,450.[8]Unverified

All 50 states and DC, ranked

100%The deduction Congress may restore

No law has restored the 100% loss deduction. The FULL HOUSE Act (Title VII of H.R. 10357) would restore it back to 2026. House Ways and Means approved it on September 16, 2026; it still needs a House vote, the Senate and a signature.[9]

FULL HOUSE Act tracker, checked daily

Data you can use

The state ranking is also available as a CSV file.

Where the numbers come from

Every rule is taken from a primary source: the Internal Revenue Code, IRS forms and publications, and each state's statutes, revenue department and lottery. Each is stored with its source and the date it was last checked, and each page lists the sources it uses. Rules we couldn't confirm on a primary source are flagged on the page. The methodology page explains how a result is calculated, and the corrections page explains how errors are fixed.

Citing WinningsTax

Figures, tables and charts can be republished with credit to WinningsTax and a link to the page they came from. For example: according to WinningsTax's state-by-state analysis (https://www.winningstax.com/gambling-tax-rankings).

Contact

For questions about the data, a figure for a different amount or state, or a correction, email hello@winningstax.com.

Sources

  1. [1] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
  2. [2] 26 U.S. Code § 6041 (information returns) · checked September 22, 2026
  3. [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
  4. [4] 26 U.S. Code § 165(d) (wagering losses) · checked September 22, 2026
  5. [5] IRS, Publication 505 (2026), Tax Withholding and Estimated Tax · checked September 22, 2026
  6. [6] IRS, Topic 419, Gambling income and losses · checked September 22, 2026
  7. [7] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
  8. [8] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  9. [9] Congress.gov, H.R. 10357 actions · checked September 22, 2026
  10. [10] H.R. 10357, Title VII (FULL HOUSE Act), as introduced · checked September 22, 2026