Gambling Winnings Tax Calculator: Federal Tax on a Win
Work out the federal tax on gambling winnings — the cut the IRS takes before the casino or sportsbook hands you the rest.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Federal tax | After-tax winnings |
|---|---|---|
| 24% of $10,000 | 2,400 | 7,600 |
| 24% of $1,000,000 (lottery) | 240,000 | 760,000 |
| 24% of $5,000 | 1,200 | 3,800 |
| 33% (federal + state) of $50,000 | 16,500 | 33,500 |
How This Calculator Works
Enter the gross winnings and the applicable tax rate. The calculator multiplies the two to give the federal tax and shows the after-tax winnings. US backup withholding on reportable wins (over $5,000 lottery, $1,200 slot, $1,500 keno) is a flat 24%; actual marginal-rate tax may differ when you file.
The Formula
Percentage of an Amount
Amount is the base value, Percentage is the rate applied to it
Worked Example
On $10,000 of gambling winnings at the 24% federal withholding rate, the casino withholds $2,400 in federal tax, leaving $7,600. State tax (often 3% to 9%) sits on top — in a 5% state, another $500 comes out, for net winnings of $7,100 once both are withheld.
Key Insight
Gambling winnings withholding is just an estimate — the actual tax is reconciled when you file. If 24% overshoots your marginal rate, you'll get part of it back. Gambling losses can offset winnings as an itemized deduction, but only up to the amount of winnings — and only if you itemize. Most casual gamblers can't use the loss deduction effectively because they don't itemize.
Frequently Asked Questions
When is gambling tax withheld?
US backup withholding (24%) applies to specific reportable wins: over $5,000 lottery, $1,200 slot machine, $1,500 keno, $5,000 poker tournament. Below those thresholds the casino doesn't withhold, but you still owe tax when filing.
Are smaller winnings taxable?
Yes — all gambling winnings are taxable income, even if no withholding occurs at the casino. The IRS expects you to report all winnings on your annual return; the threshold only triggers automatic W-2G reporting and withholding.
Can I deduct gambling losses?
Yes — but only up to the amount of winnings, and only if you itemize. Most casual gamblers take the standard deduction, which makes the loss deduction practically unusable. Professional gamblers can deduct losses against gambling income on Schedule C.
What about state tax?
Almost all states with income tax also tax gambling winnings. Rates vary: 3% to 13% typical. Some states (Nevada, Florida, Texas) have no state income tax, so federal is the only tax owed.
What is the difference between withholding and actual tax owed?
Withholding is the upfront cut taken by the payor. Actual tax is reconciled when you file based on total annual income. If 24% overshoots your marginal rate, the excess comes back as a refund; if your marginal rate is higher, you owe more at filing.
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Methodology & Review
Gambling winnings tax is gross winnings multiplied by the applicable rate. US federal flat withholding on certain winnings is 24% (W-2G reportable). Actual tax owed depends on total annual income and your marginal bracket; state tax sits on top. The figure here is the federal withholding portion.
Written by Ugo Candido · Last updated May 17, 2026.