Horse racing winnings tax in Utah
Utah taxes horse racing winnings as ordinary income at a flat 4.45%.
Updated · 2026 tax rules · How we calculate
You keep
$6,534
Cash at payout
$6,080
Total tax
$1,466
Over-withheld
$454
- Form W-2G
- Yes
- Federal withholding at payout
- $1,920
- Federal tax on the winnings
- $1,110
- State tax
- $356
- Over-withheld
- $454
- You keep
- $6,534
$8,000 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.
Utah taxes gambling winnings as ordinary income.
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.
$8,000 minus $1,466 in federal and state tax: an effective rate of 18.3%.
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.
The rules
- Utah tax
- Utah taxes horse racing winnings as ordinary income at a flat 4.45%.[1]
- Federal tax form
- Horse racing (pari-mutuel) winnings are reported on a W-2G when they are $2,000 or more (after subtracting the wager) and at least 300 times the wager. The threshold was $600 before 2026.[2]
- Federal withholding
- 24% is withheld from pari-mutuel winnings of more than $5,000, but only when the win is also at least 300 times the wager.[2]
- Utah withholding
- No Utah withholding requirement for horse racing winnings. Tax is due when you file.[5]Unverified
- Gambling losses
- Effectively no. Utah has no itemized deduction; federal itemized deductions, including gambling losses, count only toward a small nonrefundable credit worth 6% of them that phases out as income rises.[6]
- Visitors
- Utah does not tax nonresidents on horse racing winnings. Visitors owe tax to their home state instead.[5]Unverified
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Utah.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $67 | $1,253 |
| $2,000 | Yes | $0 | $240 | $89 | $1,671 |
| $8,000 | Yes | $1,920 | $1,110 | $356 | $6,534 |
| $10,000 | Yes | $2,400 | $1,550 | $445 | $8,005 |
| $100,000 | Yes | $24,000 | $22,114 | $4,450 | $73,436 |
Assumes a $2 bet amount, so the 300x test is met at every amount shown.
Questions
- How much is Utah tax on horse racing winnings?
- Utah taxes horse racing winnings as ordinary income at a flat 4.45%.[1]
- Does Utah withhold tax from horse racing winnings?
- Utah has no withholding requirement for horse racing winnings. Tax is due when you file.[5]Unverified
- Do visitors pay Utah tax on horse racing winnings?
- Utah does not tax nonresidents on horse racing winnings. Visitors owe tax to their home state instead.[5]Unverified
More for Utah
All of Utah's gambling tax rules · Horse racing in every state
Sources
- [1] EY Tax News, Utah law lowers state income tax rate retroactive to January 1, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
- [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [5] Utah Constitution Art. VI, Sec. 27 · checked September 22, 2026
- [6] 2025 Utah TC-40 Instructions · checked September 22, 2026