Horse racing winnings tax in West Virginia
West Virginia taxes horse racing winnings as ordinary income at graduated rates from 2.11% to 4.58%.
Updated · 2026 tax rules · How we calculate
You keep
$6,531
Cash at payout
$5,714
Total tax
$1,469
Over-withheld
$817
- Form W-2G
- Yes
- Federal withholding at payout
- $1,920
- Federal tax on the winnings
- $1,110
- State tax
- $359
- West Virginia withholding at payout
- $366
- Over-withheld
- $817
- You keep
- $6,531
$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.
West Virginia taxes gambling winnings as ordinary income.
West Virginia requires the payer to hold back 4.58% for state 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.
$8,000 minus $1,469 in federal and state tax: an effective rate of 18.4%.
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
- West Virginia tax
- West Virginia taxes horse racing winnings as ordinary income at graduated rates from 2.11% to 4.58%.[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]
- West Virginia withholding
- West Virginia withholds 4.58% whenever federal tax is withheld.[5]
- Gambling losses
- You can subtract West Virginia gambling losses, up to your West Virginia gambling winnings, on Schedule M without itemizing on the state return. Losses from other states or unlawful gambling don't count.[6]Unverified
- Visitors
- West Virginia does not tax nonresidents on horse racing winnings. Visitors owe tax to their home state instead.[7]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 West Virginia.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $63 | $1,257 |
| $2,000 | Yes | $0 | $240 | $84 | $1,676 |
| $8,000 | Yes | $2,286 | $1,110 | $359 | $6,531 |
| $10,000 | Yes | $2,858 | $1,550 | $451 | $7,999 |
| $100,000 | Yes | $28,580 | $22,114 | $4,573 | $73,313 |
Assumes a $2 bet amount, so the 300x test is met at every amount shown.
Questions
- How much is West Virginia tax on horse racing winnings?
- West Virginia taxes horse racing winnings as ordinary income at graduated rates from 2.11% to 4.58%.[1]
- Does West Virginia withhold tax from horse racing winnings?
- West Virginia withholds 4.58% whenever federal tax is withheld.[5]
- Do visitors pay West Virginia tax on horse racing winnings?
- West Virginia does not tax nonresidents on horse racing winnings. Visitors owe tax to their home state instead.[7]Unverified
More for West Virginia
All of West Virginia's gambling tax rules · Horse racing in every state
Sources
- [1] West Virginia Tax Division, Personal Income Tax Reduction Bill · 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] WV TSD 432, Gambling Withholding and Losses (Rev. June 2026) · checked September 22, 2026
- [6] W. Va. Code § 11-21-12n · checked September 22, 2026
- [7] W. Va. Code § 11-21-32 · checked September 22, 2026