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.
Why most gambling losses aren't deductible
Federal gambling loss deduction strict requirements. (1) Must itemize deductions (~10-15% of taxpayers post-TCJA). (2) Loss deduction limited to gambling winnings (can't generate net loss).
Example. $10K gambling winnings + $15K gambling losses. If itemize: deduct $10K of losses (offset winnings); remaining $5K losses NOT deductible.
If take standard deduction: cannot deduct gambling losses AT ALL. Pay tax on full $10K winnings.
For most casual gamblers: pay full tax on gambling winnings; no loss deduction. Net tax burden disproportionate to actual net gambling outcome.
Recordkeeping requirements. IRS requires contemporaneous records of gambling activity: date, location, type, amount won/lost, supporting documents. Without records, deduction denied even if income reported.
Professional gambler treatment. Substantial gambling time + intent to profit + sole or primary income source can qualify as 'trade or business' under IRC §183. Allows net gambling loss deduction against business income. High bar — most casual gamblers don't qualify.
Reporting thresholds and withholding
Different reporting thresholds by game type.
(1) BINGO/SLOTS — W-2G issued for winnings ≥ $1,200 from single play.
(2) KENO — W-2G for winnings ≥ $1,500 reduced by wager.
(3) POKER TOURNAMENTS — W-2G for winnings ≥ $5,000 reduced by buy-in.
(4) HORSE RACING — W-2G for winnings ≥ $600 AND payout ≥ 300× wager.
(5) LOTTERY/SWEEPSTAKES — W-2G for winnings ≥ $600 AND payout ≥ 300× wager.
Withholding required. 24% federal withholding on substantial winnings (typically $5K+ for poker tournaments; lottery jackpot $5K+). Withholding is just deposit toward final tax; final tax based on bracket may be higher (28-37%).
All gambling income reportable. Even if no W-2G issued (smaller amounts), winnings are still taxable income. IRS doesn't always know about smaller winnings but reporting required.
State tax. Some states tax gambling winnings at state rate; some states exempt (CA, NJ for casino winnings); some states tax non-residents on gambling winnings won in that state.
Gambling winnings tax burden (illustrative, federal only)
Reference federal tax on gambling winnings (no offsetting losses, taxpayer in respective bracket).
| Winnings | 22% bracket tax | 24% bracket tax | 32% bracket | 37% bracket |
|---|---|---|---|---|
| $1,000 | $220 | $240 | $320 | $370 |
| $5,000 | $1,100 | $1,200 | $1,600 | $1,850 |
| $10,000 | $2,200 | $2,400 | $3,200 | $3,700 |
| $25,000 | $5,500 | $6,000 | $8,000 | $9,250 |
| $100,000 | $22,000 | $24,000 | $32,000 | $37,000 |
| $1,000,000 | $220K | $240K | $320K | $370K |
Federal tax only — state tax adds 0-13% depending on state. For substantial winnings, marginal tax bracket can push to 37% federal. Gambling winnings can substantially increase total income, pushing earner into higher bracket on entire income for that year — not just on winnings. Lottery winners often face top bracket on entire year's income.
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.
When is this calculator unreliable?
When gambling losses available to offset (only if itemizing AND only up to winnings amount — most casual gamblers can't deduct losses post-TCJA standard deduction era). Also unreliable when winnings push taxpayer into higher bracket on remaining income (large lottery winnings can shift entire year's tax bracket). For substantial gambling income, consult tax professional.
References & Authoritative Sources
- Internal Revenue Service (IRS) — Gambling Winnings Taxation · consulted June 1, 2026 · Federal regulator on gambling income
- American Gaming Association (AGA) — Gambling Industry Tax Resources · consulted June 1, 2026 · Industry trade association data
- Tax Foundation — Lottery and Gambling Tax Research · consulted June 1, 2026 · Authoritative gambling tax research
Related Calculators
Methodology & Review
Gambling winnings tax depends on amount. U.S. federal tax treats gambling winnings as ordinary income, taxed at marginal rate (10-37%). Withholding required: 24% federal withholding on winnings over $5,000 (lottery, sweepstakes, certain games). State taxes additionally. Gambling losses deductible only up to winnings AND only if itemizing (impossible for most U.S. taxpayers post-TCJA). RELIABILITY: Reliable for direct calculation. Less reliable when (a) gambling losses can be deducted against winnings (only if itemizing AND only up to winning amount); (b) state tax treatment varies; (c) professional gambler treatment differs from recreational.
Updated