Tennessee gambling winnings tax calculator
Tennessee has no personal income tax, so it doesn't tax gambling winnings.
Updated · 2026 tax rules · How we calculate
You keep
$8,450
Cash at payout
$7,600
Total tax
$1,550
Over-withheld
$850
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $0
- Over-withheld
- $850
- You keep
- $8,450
$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.
Tennessee has no personal income tax.
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.
$10,000 minus $1,550 in federal and state tax: an effective rate of 15.5%.
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 Tennessee taxes gambling winnings
- State income tax
- Tennessee has no personal income tax, so it doesn't tax gambling winnings.[1]
- Legal gambling
- Sports betting: legal online and in person. State lottery: yes. Casinos: no. Online casino: not legal.[2]Unverified
Also worth knowing
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Tennessee. Tennessee ranks 1st of 51 (tied with 8 other states) for what you keep from a $10,000 sports bet, and 1st of 51 (tied with 9 other states) for a $1 million lottery prize. See every state ranked.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $2,400 | $1,550 | $0 | $8,450 |
| Casino and slots | $5,000 | $0 | $600 | $0 | $4,400 |
| Table games | $5,000 | $0 | $600 | $0 | $4,400 |
| Poker tournaments | $20,000 | $0 | $3,750 | $0 | $16,250 |
| Lottery | $50,000 | $12,000 | $10,350 | $0 | $39,650 |
| Daily fantasy sports | $5,000 | $0 | $600 | $0 | $4,400 |
| Horse racing | $8,000 | $1,920 | $1,110 | $0 | $6,890 |
Questions
- Does Tennessee tax gambling winnings?
- No. Tennessee has no personal income tax. You still owe federal tax.[1]
Gambling across the border from Tennessee
Tennessee won't tax your winnings, but a neighboring state can tax what you win there as a visitor, and you file a nonresident return to pay it.
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] American Gaming Association, Tennessee Gaming Regulatory Fact Sheet (2025) · checked September 22, 2026
- [3] Tennessee Department of Revenue, Hall Income Tax · checked September 22, 2026
- [4] Alabama 2025 Form 40NR Booklet · checked September 22, 2026
- [5] Arkansas Bureau of Legislative Research, SB1 fiscal impact (2026 First Extraordinary Session) · checked September 22, 2026
- [6] Arkansas 2025 AR1000F/AR1000NR Instructions · checked September 22, 2026
- [7] Office of the Governor of Georgia, Gov. Kemp signs legislation lowering taxes (May 11, 2026) · checked September 22, 2026
- [8] Georgia DOR: Filing Residents, Nonresidents, and Part-Year Residents FAQ · checked September 22, 2026
- [9] KRS 141.020 Levy of income tax on individuals · checked September 22, 2026
- [10] RSMo 143.181 - Missouri source income of nonresidents · checked September 22, 2026
- [11] MS DOR 2025 Form 80-100 Resident, Non-Resident and Part-Year Resident Income Tax Instructions · checked September 22, 2026
- [12] N.C.G.S. 105-153.4 · checked September 22, 2026
- [13] Va. Code § 58.1-302, Income and deductions from Virginia sources · checked September 22, 2026