About the Gambling Winnings Tax Calculator
This calculator estimates how much federal income tax you owe on gambling winnings — casino jackpots, poker tournaments, lottery prizes, horse racing and online sports betting — and compares it with what was already withheld. Enter your winnings, your losses, your other taxable income and filing status, and it stacks the winnings on top of your income using the 2026 federal brackets to show the real extra tax, your balance due or refund, and the after-tax result.
All gambling winnings are taxable, whether or not you receive a Form W-2G. Losses are deductible only if you itemize on Schedule A, and starting with tax year 2026 the One Big Beautiful Bill Act limits the deduction to 90% of your losses, still capped at your winnings — so even a break-even year can leave taxable income. Casinos and sportsbooks generally withhold 24% on wagering winnings over $5,000 (when the payout is at least 300 times the bet), and 24% backup withholding applies if you do not give a taxpayer ID.
Because the 24% withholding is a flat rate, winners in the 32%, 35% or 37% brackets usually owe more in April, while smaller winners may get some back. Enter taxable income before gambling the way it will appear on your return — after your standard deduction, or after your other itemized deductions if you itemize — for the most accurate estimate. State tax is applied as a flat rate you choose; some states do not allow gambling losses at all.
With the default inputs, the federal tax on your gambling is $1,408.00. Change any value above to recalculate instantly.
How to use the gambling winnings tax calculator
- 1Choose your filing status and enter your taxable income before any gambling.
- 2Enter your total winnings and total losses for the year.
- 3Say whether you itemize deductions.
- 4Enter the federal tax withheld shown on your W-2G forms.
- 5Read the tax on your gambling and whether you owe more or get money back.
Formula and method
Gambling winnings are ordinary income and are added in full to your other income. If you itemize, you can deduct gambling losses as an “other itemized deduction”, but for tax years beginning after 2025 the deduction is 90% of your losses and can never exceed your winnings. Non-itemizers get no deduction for losses.
The federal tax on your gambling is the difference between the 2026 tax on your taxable income with and without the net gambling income, using the 2026 brackets (for single filers 10% to $12,400, 12% to $50,400, 22% to $105,700, 24% to $201,775 and so on). Withholding shown on Forms W-2G is credited against that tax. The calculator ignores the effect of higher AGI on other items (such as Social Security taxation, credits or the 2/37 limit on itemized deductions for the 37% bracket).
- T
- Taxable income before gambling (after deductions)
- Tax(x)
- 2026 federal income tax on taxable income x
- 90%
- Share of gambling losses deductible from 2026 (P.L. 119-21, §70114)
Worked examples
$10,000 jackpot with $4,000 of losses (itemizing)
90% of the $4,000 losses ($3,600) is deductible, leaving $6,400 of taxable gambling income. On top of $60,000 it is all taxed at 22% — $1,408. The casino withheld $2,400, so $992 comes back as a lower bill or bigger refund.
Break-even sports bettor
Winning and losing $20,000 each used to net to zero, but from 2026 only $18,000 of losses is deductible. The remaining $2,000 is taxed at 22%, so the bettor owes $440 despite not making a profit.
$250,000 lottery prize, married filing jointly, standard deduction
The prize stacks on $90,000 of taxable income and climbs through the 12%, 22% and 24% brackets to $340,000, so federal tax on it is $56,492. Because the couple stays below the 32% bracket, the 24% withholding ($60,000) is $3,508 more than needed — but they still owe $10,625 of state tax at 4.25%.
Frequently asked questions
How much tax do you pay on gambling winnings?+
Gambling winnings are taxed as ordinary income at your federal bracket rate — 10% to 37% — plus any state income tax. The 24% withheld by a casino or lottery is only a prepayment; your actual rate depends on your total income.
What is the new 90% rule for gambling losses?+
Starting with tax year 2026, the One Big Beautiful Bill Act limits the deduction for wagering losses to 90% of the losses, and still no more than your winnings. A gambler who wins $50,000 and loses $50,000 can deduct only $45,000, so $5,000 is taxable.
When does a casino issue a W-2G?+
Payers file Form W-2G when winnings meet a reporting threshold that depends on the game (slots and bingo, keno, poker tournaments and other wagering each have their own) or when tax is withheld. The 2026 W-2G instructions set a minimum threshold amount of $2,000 for payments made in 2026, indexed for inflation afterwards. All winnings are taxable even without a W-2G.
When is tax withheld from gambling winnings?+
Payers withhold 24% when winnings from sweepstakes, lotteries, wagering pools, or bets paying at least 300 times the wager exceed $5,000 after subtracting the wager. Backup withholding of 24% also applies to reportable winnings if you do not provide a taxpayer identification number.
Can I deduct gambling losses if I take the standard deduction?+
No. Gambling losses are an itemized deduction on Schedule A. If your total itemized deductions, including the deductible losses, are below the standard deduction ($16,100 single or $32,200 joint for 2026), the losses give no benefit.
What records do I need for gambling losses?+
Keep a diary of each session with the date, place, game, amounts won and lost, plus W-2G forms, wagering tickets, casino win/loss statements and bank or app records. The IRS can deny losses you cannot document.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.