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WinningsTax

District of Columbia gambling winnings tax calculator

District of Columbia taxes gambling winnings as ordinary income at graduated rates from 4% to 10.75%.

Updated · 2026 tax rules · How we calculate

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More options
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You keep

$7,800

Cash at payout

$7,600

Total tax

$2,200

Over-withheld

$200

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
$650

District of Columbia taxes gambling winnings as ordinary income.

Over-withheld
$200

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
$7,800

$10,000 minus $2,200 in federal and state tax: an effective rate of 22%.

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 District of Columbia taxes gambling winnings

State income tax
District of Columbia taxes gambling winnings as ordinary income at graduated rates from 4% to 10.75%.[1]
Gambling losses
You can deduct losses only if you itemize on your federal return, because DC requires the same deduction type as federal.[2]
Withholding
Lottery payers withhold 10.75% when federal withholding applies. Nonresidents who document their status are not withheld on.[3]
Nonresidents
No. DC cannot tax nonresidents' income. Nonresidents use Form D-40B only to reclaim any DC tax withheld.[2]
Tax paid to other states
Yes. Residents get a credit for income tax paid to another state on income from there, up to the DC tax on that income.[2]
Legal gambling
Sports betting: legal online and in person. State lottery: yes. Casinos: no. Online casino: not legal.[4]

Also worth knowing

  • For DC AGI over $200,000 ($100,000 married filing separately), itemized deductions, including gambling losses, are reduced by 5% of the excess.[2]
  • DC decoupled from a specific list of 2025 federal tax changes in November 2025. The 90% gambling-loss cap wasn't on the list, so it carries into DC itemized deductions.[2]
  • DC treats lottery winnings as received, and taxable, in the year the winner is determined, even when paid as an annuity.[3]

Examples by game

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

GameWonWithheldFederal taxState taxYou keep
Sports betting$10,000$2,400$1,550$650$7,800
Casino and slots$5,000$0$600$325$4,075
Table games$5,000$0$600$325$4,075
Poker tournaments$20,000$0$3,750$1,378$14,872
Lottery$50,000$17,375$10,350$3,928$35,722
Daily fantasy sports$5,000$0$600$325$4,075
Horse racing$8,000$1,920$1,110$520$6,370

Questions

Does District of Columbia tax gambling winnings?
Yes, at graduated rates from 4% to 10.75%.[1]
Can you deduct gambling losses in District of Columbia?
You can deduct losses only if you itemize on your federal return, because DC requires the same deduction type as federal.[2]
Does District of Columbia withhold tax from gambling winnings?
Lottery payers withhold 10.75% when federal withholding applies. Nonresidents who document their status are not withheld on.[3]
Do nonresidents pay District of Columbia tax on gambling winnings?
No. DC cannot tax nonresidents' income. Nonresidents use Form D-40B only to reclaim any DC tax withheld.[2]

District of Columbia by game

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] DC 2025 D-40 Booklet (Calculation F; Line 17) · checked September 22, 2026
  3. [3] D.C. Code 47-1812.08(l) · checked September 22, 2026
  4. [4] American Gaming Association, State of the States 2025 · checked September 22, 2026