Texas gambling winnings tax calculator
Texas 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.
Texas 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 Texas taxes gambling winnings
- State income tax
- Texas has no personal income tax, so it doesn't tax gambling winnings.[1]
- Legal gambling
- Sports betting: not legal. State lottery: yes. Casinos: yes. Online casino: not legal.[2]Unverified
Also worth knowing
- The Texas Constitution (Art. 8, Sec. 24-a, added in 2019) prohibits a tax on individuals' net incomes, so gambling winnings face only federal tax.[3]
- The Texas Lottery withholds 24% federal tax on prizes over $5,000, measured after subtracting the wager (a $5,007 prize on a $50 ticket is not withheld).[4]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Texas. Texas 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 Texas tax gambling winnings?
- No. Texas has no personal income tax. You still owe federal tax.[1]
Gambling across the border from Texas
Texas 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] Texas Penal Code Chapter 47, Gambling · checked September 22, 2026
- [3] Texas Constitution Article 8, Sec. 24-a · checked September 22, 2026
- [4] Texas Lottery FAQ · 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] LDR FAQ: Texas resident who won at a Louisiana casino · checked September 22, 2026
- [8] 2025 PIT-B Instructions, Line 7 · checked September 22, 2026
- [9] Oklahoma Tax Commission, 2025 Legislative Update · checked September 22, 2026
- [10] 2025 Oklahoma Form 511-NR Packet (Oklahoma Tax Commission) · checked September 22, 2026