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WinningsTax

Horse racing winnings tax in District of Columbia

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

Updated · 2026 tax rules · How we calculate

$
$
$
$
More options
$

You keep

$6,370

Cash at payout

$6,080

Total tax

$1,630

Over-withheld

$290

Form W-2G
Yes

$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.

Federal withholding at payout
$1,920

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
$1,110

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.

State tax
$520

District of Columbia taxes gambling winnings as ordinary income.

Over-withheld
$290

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
$6,370

$8,000 minus $1,630 in federal and state tax: an effective rate of 20.4%.

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 horse racing winnings as ordinary income at graduated rates from 4% to 10.75%.[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]
District of Columbia withholding
No District of Columbia withholding requirement for horse racing winnings. Tax is due when you file.[5]
Gambling losses
You can deduct losses only if you itemize on your federal return, because DC requires the same deduction type as federal.[6]
Visitors
District of Columbia does not tax nonresidents on horse racing winnings. Visitors owe tax to their home state instead.[6]

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.

WonW-2GWithheldFederal taxState taxYou keep
$1,500No$0$180$98$1,223
$2,000Yes$0$240$130$1,630
$8,000Yes$1,920$1,110$520$6,370
$10,000Yes$2,400$1,550$650$7,800
$100,000Yes$24,000$22,114$8,178$69,708

Assumes a $2 bet amount, so the 300x test is met at every amount shown.

Questions

How much is District of Columbia tax on horse racing winnings?
District of Columbia taxes horse racing winnings as ordinary income at graduated rates from 4% to 10.75%.[1]
Does District of Columbia withhold tax from horse racing winnings?
District of Columbia has no withholding requirement for horse racing winnings. Tax is due when you file.[5]
Do visitors pay District of Columbia tax on horse racing winnings?
District of Columbia does not tax nonresidents on horse racing winnings. Visitors owe tax to their home state instead.[6]

More for District of Columbia

All of District of Columbia's gambling tax rules · Horse racing in every state

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
  3. [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
  4. [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
  5. [5] D.C. Code 47-1812.08(l) · checked September 22, 2026
  6. [6] DC 2025 D-40 Booklet (Calculation F; Line 17) · checked September 22, 2026