Daily fantasy sports winnings tax in District of Columbia
District of Columbia taxes daily fantasy winnings as ordinary income at graduated rates from 4% to 10.75%.
Updated · 2026 tax rules · How we calculate
You keep
$4,075
Cash at payout
$5,000
Total tax
$925
Due when you file
$925
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $325
- Still to pay when you file
- $925
- You keep
- $4,075
Daily fantasy sites report net winnings of $2,000 or more for the year on a 1099-MISC.
Daily fantasy sports winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file. If you don't give the payer your Social Security number, 24% backup withholding applies.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 12% bracket.
District of Columbia taxes gambling winnings as ordinary income.
Tax owed ($925) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $925 in federal and state tax: an effective rate of 18.5%.
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.
The rules
- District of Columbia tax
- District of Columbia taxes daily fantasy winnings as ordinary income at graduated rates from 4% to 10.75%.[1]
- Federal tax form
- Daily fantasy sites generally report net winnings of $2,000 or more for the year on Form 1099-MISC, not a W-2G. The 1099-MISC threshold was $600 before 2026.[2]Unverified
- Federal withholding
- Fantasy sites don't withhold federal tax from winnings in practice.[2]Unverified
- District of Columbia withholding
- No District of Columbia withholding requirement for daily fantasy winnings. Tax is due when you file.[3]
- Gambling losses
- You can deduct losses only if you itemize on your federal return, because DC requires the same deduction type as federal.[4]
- Visitors
- District of Columbia does not tax nonresidents on daily fantasy winnings. Visitors owe tax to their home state instead.[4]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in District of Columbia.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $98 | $1,223 |
| $2,000 | Yes | $0 | $240 | $130 | $1,630 |
| $5,000 | Yes | $0 | $600 | $325 | $4,075 |
| $10,000 | Yes | $0 | $1,550 | $650 | $7,800 |
| $100,000 | Yes | $0 | $22,114 | $8,178 | $69,708 |
Questions
- How much is District of Columbia tax on daily fantasy winnings?
- District of Columbia taxes daily fantasy winnings as ordinary income at graduated rates from 4% to 10.75%.[1]
- Does District of Columbia withhold tax from daily fantasy winnings?
- District of Columbia has no withholding requirement for daily fantasy winnings. Tax is due when you file.[3]
- Do visitors pay District of Columbia tax on daily fantasy winnings?
- District of Columbia does not tax nonresidents on daily fantasy winnings. Visitors owe tax to their home state instead.[4]
More for District of Columbia
All of District of Columbia's gambling tax rules · Daily fantasy sports in every state
- Sports betting in District of ColumbiaW-2G at $2,000
- Casino and slots in District of ColumbiaW-2G at $2,000
- Table games in District of ColumbiaNo tax form, still taxable
- Poker tournaments in District of ColumbiaW-2G at $2,000
- Lottery in District of ColumbiaW-2G at $2,000
- Horse racing in District of ColumbiaW-2G at $2,000
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms 1099-MISC and 1099-NEC (2026) · checked September 22, 2026
- [3] D.C. Code 47-1812.08(l) · checked September 22, 2026
- [4] DC 2025 D-40 Booklet (Calculation F; Line 17) · checked September 22, 2026