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.
| 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]
Tennessee by game
- Sports betting in TennesseeW-2G at $2,000
- Casino and slots in TennesseeW-2G at $2,000
- Table games in TennesseeNo tax form, still taxable
- Poker tournaments in TennesseeW-2G at $2,000
- Lottery in TennesseeW-2G at $2,000
- Daily fantasy sports in Tennessee1099-MISC at $2,000
- Horse racing in TennesseeW-2G at $2,000
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