Free Tax Tool

Gambling Winnings Tax Calculator

Estimate the 2026 federal tax on your casino, lottery, and sports betting winnings, including the new rule that only 90% of gambling losses are deductible.

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All winnings for the year, with or without a W-2G

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Documented wagering losses for the year

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Wages and other taxable income, excluding gambling

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Mortgage interest, state and local taxes, charity. Enter 0 if you never itemize.

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From Form W-2G box 4, if any

Optional. Approximated with the state's top rate on gross winnings.

Estimated 2026 tax on gambling winnings

Federal income tax on your winnings

$1,958.00

Gambling winnings
$10,000.00
Deductible losses (90%, capped at winnings)
$7,200.00
Best deduction
Itemized: $17,200.00
Tax benefit from losses (extra deduction)
$1,100.00
Taxable income without gambling
$58,900.00
Taxable income with gambling
$67,800.00
Marginal tax bracket
22%
Effective federal rate on winnings
19.58%
Federal tax withheld
$0.00
Estimated federal balance due
$1,958.00

Estimate only. Winnings are ordinary income (Schedule 1, line 8b). Losses only count if you itemize on Schedule A, and only up to your winnings. Payers generally withhold 24% on winnings over $5,000 from lotteries, sweepstakes, wagering pools, and other bets paying at least 300 times the wager. Slots, bingo, and keno wins of $2,000 or more get a W-2G but no regular withholding. Ignores credits and the effect of higher AGI on other tax items.

How tax on gambling winnings is calculated

  1. Add up all of your winnings for the year. They are ordinary income, reported on Schedule 1, line 8b.
  2. Find your deductible losses: your losses up to the amount of your winnings, times 90% for 2026.
  3. Compare your itemized deductions (other itemized deductions plus deductible losses) with your standard deduction and use the larger one. Losses only help if they push you past the standard deduction.
  4. The tax on your winnings is the federal tax on your taxable income with gambling minus the tax without it. Subtract anything already withheld to see what you still owe.

Example: a single filer with $75,000 of other income and $10,000 of other itemized deductions wins $10,000 and loses $8,000. Only 90% of the $8,000, or $7,200, is deductible. Itemized deductions become $17,200, which beats the $16,100 standard deduction by just $1,100. Taxable income goes from $58,900 to $67,800, all in the 22% bracket, so the winnings add $1,958 of federal tax. Under the old 100% rule the extra tax would be $1,782, so the 90% limit costs this player $176.

Notice that this player came out $2,000 ahead but is taxed on $8,900 of extra income. Because losses are an itemized deduction, most casual gamblers who take the standard deduction pay tax on every dollar they win.

Frequently asked questions

How much tax do you pay on gambling winnings?

Gambling winnings are taxed as ordinary income at your regular federal bracket rate, from 10% to 37%. There is no special gambling tax rate. The 24% withheld on some large wins is only a prepayment. Depending on your bracket, you may owe more or get some back when you file. Most states also tax winnings.

What is the new 90% gambling loss rule?

Starting with tax year 2026, the One Big Beautiful Bill Act limits the deduction for gambling losses to 90% of your losses, still capped at your winnings. Someone who wins $101,000 and loses $100,000 can deduct only $90,000, so they pay tax on $11,000 even though they were up only $1,000. This calculator applies 90% to your losses up to the amount of your winnings.

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 part of your losses, are not more than your standard deduction, the losses give you no tax benefit and you pay tax on all of your winnings.

When do I get a Form W-2G in 2026?

For payments made in 2026, the minimum W-2G reporting threshold is $2,000, up from $1,200 for slot machines and bingo, $1,500 for keno, and $600 for other wagering (which still must pay at least 300 times the bet). Keno is measured after subtracting the wager, and poker tournaments net of the buy-in. The threshold is adjusted for inflation each year after 2026. Separately, winnings minus the wager over $5,000 from lotteries, sweepstakes, wagering pools, and certain other bets are subject to 24% federal withholding.

Do I have to report gambling winnings without a W-2G?

Yes. All gambling winnings are taxable income, whether or not you receive a W-2G and whether they come from a casino, a lottery, a raffle, a sports betting app, or a friendly bet. Report the total on Schedule 1, line 8b.

How are sports betting app winnings taxed?

The same as any other gambling income. Your net winnings on each bet are taxable, and apps may send you a W-2G for larger payouts. Keep your app history: it is good documentation for both winnings and losses if you itemize. Deposits and withdrawals are not income by themselves.

Is the 90% gambling loss rule being repealed?

Not yet. H.R. 10357, which would restore the full 100% deduction for 2026, passed the House Ways and Means Committee on September 16, 2026, but as of October 2026 it has not been enacted. Use the toggle in the calculator to compare the current 90% rule with the 100% rule.

Does the 90% limit apply to professional gamblers?

Yes. Professional gamblers report on Schedule C instead of Schedule A, but their wagering losses, including business expenses like travel, are also limited to 90% starting in 2026 and still cannot exceed winnings. A professional gambler cannot use gambling losses to create an overall business loss.

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