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WinningsTax

Rhode Island gambling winnings tax calculator

Rhode Island taxes gambling winnings as ordinary income at graduated rates from 3.75% to 5.99%.

Updated · 2026 tax rules · How we calculate

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$
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$
More options
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You keep

$8,075

Cash at payout

$7,600

Total tax

$1,925

Over-withheld

$475

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
$375

Rhode Island taxes gambling winnings as ordinary income.

Over-withheld
$475

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
$8,075

$10,000 minus $1,925 in federal and state tax: an effective rate of 19.3%.

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 Rhode Island taxes gambling winnings

State income tax
Rhode Island taxes gambling winnings as ordinary income at graduated rates from 3.75% to 5.99%.[1]
Gambling losses
No. Rhode Island does not allow federal itemized deductions, so you can't deduct gambling losses unless you gamble professionally.[2]
Withholding
Payers must withhold Rhode Island tax whenever federal withholding applies, but the rate is not published in the regulation. Secondary sources cite 5.99%.[3]Unverified
Nonresidents
Yes. Nonresidents owe Rhode Island tax on winnings from the Rhode Island Lottery and gambling establishments in the state.[4]
Tax paid to other states
Yes. Residents can claim a credit for income tax paid to other states.[2]
Legal gambling
Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: legal.[5]

Also worth knowing

  • Rhode Island withholding mirrors federal triggers: when federal tax is withheld on gambling winnings, Rhode Island tax must be withheld too.[3]
  • To claim credit for Rhode Island tax withheld from winnings, you must attach a copy of the W-2G to your Rhode Island return.[3]

Examples by game

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

GameWonWithheldFederal taxState taxYou keep
Sports betting$10,000$2,400$1,550$375$8,075
Casino and slots$5,000$0$600$188$4,213
Table games$5,000$0$600$188$4,213
Poker tournaments$20,000$0$3,750$750$15,500
Lottery$50,000$12,000$10,350$1,990$37,660
Daily fantasy sports$5,000$0$600$188$4,213
Horse racing$8,000$1,920$1,110$300$6,590

Questions

Does Rhode Island tax gambling winnings?
Yes, at graduated rates from 3.75% to 5.99%.[1]
Can you deduct gambling losses in Rhode Island?
No. Rhode Island does not allow federal itemized deductions, so you can't deduct gambling losses unless you gamble professionally.[2]
Does Rhode Island withhold tax from gambling winnings?
Payers must withhold Rhode Island tax whenever federal withholding applies, but the rate is not published in the regulation. Secondary sources cite 5.99%.[3]Unverified
Do nonresidents pay Rhode Island tax on gambling winnings?
Yes. Nonresidents owe Rhode Island tax on winnings from the Rhode Island Lottery and gambling establishments in the state.[4]

Rhode Island by game

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] 2025 RI-1040 Instructions (RI Division of Taxation) · checked September 22, 2026
  3. [3] 280-RICR-20-55-8, Lottery and Pari-Mutuel Winnings and Prizes · checked September 22, 2026
  4. [4] 2025 RI-1040NR Instructions (RI Division of Taxation) · checked September 22, 2026
  5. [5] American Gaming Association, Rhode Island Gaming Regulatory Fact Sheet (2025) · checked September 22, 2026