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Sports Betting Tax Calculator
Your winnings
Losses only reduce your tax if you itemize on Schedule A, and only up to the amount you won.
Example: $50,000 winnings, single filer in New Jersey, no other income, no losses — federal tax $3,820, state tax $5,375, take-home $40,805. The 24% withholding ($12,000) is more than the tax owed, so $2,805 comes back as a refund.
Behind the numbers
How sports betting winnings are taxed
Sports betting winnings are ordinary income for federal tax purposes, so they are taxed at the same marginal rates as wages — not at a special gambling rate. The calculator adds your net winnings on top of your other income, subtracts the 2026 standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household), and applies the 2026 federal brackets to the result. The tax it shows is only the extra tax caused by the winnings, not the tax on your whole income.
For the example: taxable income is $50,000 − $16,100 standard deduction = $33,900. Federal tax is 10% × $12,400 ($1,240) + 12% × $21,500 ($2,580) = $3,820. State tax is $50,000 × 10.75% (New Jersey top rate) = $5,375. Take-home is $50,000 − $3,820 − $5,375 = $40,805.
The 24% withholding is separate from the tax you owe. When a single win is over $5,000, the payer must hold back 24% and send it to the IRS. That withholding is a prepayment: if it is more than your real tax, the difference comes back as a refund; if it is less, you pay the rest when you file.
State tax here uses your state’s top marginal income-tax rate, which is an upper estimate — most filers pay less, because lower slices of income fall in lower brackets and state deductions apply. Eight states have no broad income tax at all, so their state tax is $0.
2026 federal tax brackets
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | Up to $12,400 | Up to $24,800 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 |
| 37% | Over $640,600 | Over $768,700 |
Source: IRS Revenue Procedure 2025-32 (2026 tax year). Brackets apply to taxable income, after the standard deduction.
A few comparisons
Example winnings, worked out
| Winnings | Filer & state | Federal tax | State tax | Take-home |
|---|---|---|---|---|
| $10,000 | Single, Texas | $0 | $0 | $10,000 |
| $50,000 | Single, New Jersey | $3,820 | $5,375 | $40,805 |
| $100,000 | Single, California | $13,170 | $13,300 | $73,530 |
No other income and no losses in these examples. The $10,000 Texas win owes no federal tax because the $16,100 standard deduction covers it — but the $2,400 withheld (24%) still comes back as a refund.
Keep more of the win.
Keep every W-2G form and a log of your wagers, wins and losses — you need the records to deduct losses, and the IRS can ask for them.
Do not confuse withholding with tax owed: 24% held back does not mean you owe 24%. Work out the real brackets, or you may leave a refund unclaimed.
If you itemize, losses only help up to the amount you won, and only in the same year. A big loss year cannot shelter next year’s winnings.
If your winnings are large and little was withheld, set money aside or pay estimated tax during the year to avoid an underpayment penalty at filing time.
Good to know
Your sports betting tax questions, answered.
Does the 24% withholding mean I owe 24% tax on my winnings?
No. The 24% is only what the sportsbook or casino holds back when a single win is over $5,000. Your actual tax is worked out on your return at the normal income-tax brackets, and it is often lower than 24% — in the example on this page the real federal tax is $3,820 on $50,000 of winnings, so $2,805 of the withholding comes back as a refund.
Can I deduct my gambling losses?
Only if you itemize deductions on Schedule A, and only up to the amount of your winnings — you cannot deduct more than you won, and you cannot carry unused losses to another year. If you take the standard deduction, your losses do not reduce your tax at all. Keep records of every wager, win and loss.
Which states tax sports betting winnings?
Most states that have an income tax also tax gambling winnings as ordinary income. Eight states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming — have no broad state income tax, and Washington does not tax wages. This calculator uses each state’s top marginal rate as an upper estimate; your real state tax is usually lower.
Do I owe tax if I won less than $5,000?
Yes. All gambling winnings are taxable income, even small wins and even if no tax was withheld. The $5,000 figure only decides whether the payer must withhold 24% up front — it is not a tax-free threshold.