Lottery and Gambling Winnings Tax Calculator 2025
Free Lottery and Gambling Tax Calculator - All Winnings Worldwide
Calculate taxes on lottery, sports betting, casino, and all gambling winnings for 23 countries. Get instant federal, state, and international tax calculations. Find out if gambling winnings are taxable in your country.
Calculate your exact tax liability with our comprehensive taxes on gambling winnings calculator below.
Are Your Gambling Winnings Taxable?
Select your country to instantly see if gambling winnings are taxable:
✅ Tax-Free Countries
UK, Canada, Australia, Ireland, New Zealand, South Africa, Singapore, Austria
Result: No tax for recreational players
❌ Taxable Countries
USA, Italy, Spain, Netherlands, Japan, India, Philippines, Brazil, Mexico, Belgium, Portugal, South Korea
Result: Taxes apply (rates vary)
⚠️ Conditional
France (casino only), Germany (stakes only), Switzerland (canton-based)
Result: Special conditions apply
Tax Breakdown
💡 Looking for Where to Bet? While calculating your sports betting taxes is important, choosing the right platform matters too. Check out our guide to the best betting sites to find top-rated sportsbooks with competitive odds and reliable payouts.
Quick Answer: Gambling and Lottery Tax Rates
USA: 24-37% federal + 0-13.3% state tax (all winnings taxable)
UK, Canada, Australia: Tax-free for recreational players
Singapore, Austria: Tax-free (Singapore has casino entry levy)
Switzerland: Canton-based, up to 35% on lottery >CHF 1M
Belgium: 11% on all gambling winnings
Portugal: 20% stamp duty on prizes >€5,000
South Korea: 22% lottery (>₩50M), 33% other gambling
France: 13.7% on casino winnings >€1,500 (lottery tax-free)
Italy: 20% lottery/keno, 25% sports/casino/poker
Brazil: 15% on lottery winnings >R$2,112.00
Highest Tax: Japan at 50% (simplified, after deduction)
Most Complex: USA with federal + state variations
Are Gambling Winnings Taxable? Complete Guide by Country
The taxation of gambling winnings varies dramatically worldwide. In the United States, all gambling winnings are taxable income, including lottery, casino, sports betting, and even small raffle prizes. However, many countries like the United Kingdom, Canada, and Australia don't tax recreational gambling winnings at all.
Countries Where Gambling Winnings ARE Taxable
- United States: All winnings taxable (federal 24-37% + state 0-13.3%)
- Italy: 20-25% depending on game type
- Spain: 20% on amounts over €40,000
- Netherlands: 30.5% on prizes over €449
- Japan: Progressive rates up to 50%
- India: 31.2% TDS on all online winnings
- Philippines: 20% on winnings over ₱10,000
- Brazil: 15% on lottery prizes over R$2,112.00
- Mexico: Up to 21% combined federal and state
- Belgium: 11% on all gambling winnings
- Portugal: 20% stamp duty on prizes over €5,000
- South Korea: 22% lottery (>₩50M), 33% other gambling
Countries Where Gambling Winnings are TAX-FREE
- United Kingdom: All gambling winnings tax-free for players
- Canada: Winnings considered "windfalls" - not taxed
- Australia: Not considered assessable income
- Ireland: No tax on gambling winnings
- New Zealand: Tax-free even for professionals
- South Africa: Tax-free from licensed operators
- Singapore: Tax-free (but casino entry levy applies)
- Austria: Tax-free for recreational players
Special Tax Cases
- France: Only casino winnings over €1,500 taxed (13.7%); lottery and sports betting tax-free
- Germany: 5.3% tax on betting stakes, not winnings
- Switzerland: Canton-based system, lottery prizes over CHF 1,000,000 taxed up to 35%
- Professional Gamblers: May be taxed even in "tax-free" countries as business income
Lottery Tax Calculator: Understanding Your Tax on Lottery Winnings
Lottery winnings are among the most heavily taxed forms of gambling income, especially in the United States. Our lottery tax calculator (also serving as a taxes on lottery winnings calculator) helps you understand exactly how much you'll owe on your lottery prize, whether it's a small state lottery win or a massive Powerball jackpot.
USA Lottery Tax Breakdown
Federal Lottery Tax
- Automatic Withholding: 24% federal tax withheld on lottery prizes over $5,000
- Actual Tax Rate: Up to 37% depending on your tax bracket
- Additional Tax: You may owe more when filing if your rate exceeds 24%
State Lottery Tax by State (Highest to Lowest)
- Highest: California (1-13.3% progressive), New York (10.9%), Hawaii (11%)
- No Tax States: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
- Average: Most states tax lottery winnings between 3-7%
International Lottery Tax Comparison
| Country | Lottery Tax Rate | Key Details |
|---|---|---|
| United Kingdom | 0% | All lottery winnings tax-free |
| Canada | 0% | Lottery winnings are "windfalls" - not taxed |
| Australia | 0% | Tax-free for all lottery prizes |
| Singapore | 0% | Tax-free for all lottery prizes |
| Austria | 0% | Tax-free for recreational players |
| Switzerland | Up to 35% | Canton-based, on prizes over CHF 1,000,000 |
| Belgium | 11% | Flat rate on all lottery winnings |
| Portugal | 20% | On prizes over €5,000 |
| South Korea | 22% | On prizes over ₩50 million |
| Spain | 20% | On state lottery prizes over €40,000 |
| Italy | 20% | Flat rate on all lottery winnings |
| France | 0% | Lottery winnings are tax-free |
| Brazil | 15% | On prizes over R$2,112.00 |
USA State-by-State Gambling Tax Guide: All 50 States
Federal taxes on lottery and gambling winnings apply to all US residents, but state taxes vary dramatically. Use our lottery tax calculator by state to determine your exact tax liability for lottery winnings, casino profits, and sports betting payouts.
Tax-Free States (No State Income Tax on Gambling Winnings)
🌴 Florida
- No state income tax on lottery winnings
- Federal tax on lottery winnings still applies
- Popular for Powerball and Mega Millions
- Florida Lottery prizes tax-free at state level
🎰 Nevada
- No state income tax despite Las Vegas casinos
- Casino winnings tax-free at state level
- Sports betting winnings not taxed by state
- Federal gambling tax still applies
⭐ Texas
- No state income tax on any gambling winnings
- Texas lottery prizes tax-free at state level
- Federal lottery tax calculator still needed
- Popular tax haven for big winners
🌲 Washington
- No state income tax on lottery or gambling
- Washington lottery winnings state tax-free
- Tribal casino winnings not state taxed
🏔️ Wyoming
- No state income tax
- Cowboy Draw lottery winnings tax-free
- Small population, fewer big winners
⚓ Alaska
- No state income tax or lottery
- Gambling winnings from other states not taxed
🏖️ South Dakota
- No state income tax
- Deadwood casino winnings state tax-free
🎸 Tennessee
- No state income tax on gambling
- Tennessee lottery winnings tax-free at state level
🦞 New Hampshire
- No state income tax on gambling winnings
- NH lottery prizes state tax-free
High Tax States (Over 8% State Tax)
🌉 California Lottery Tax Calculator
- Progressive rates: 1% to 12.3% based on income
- Additional 1% mental health tax on income >$1M
- California lottery tax can reach 13.3% for big wins
- Does California tax lottery winnings? Yes, as ordinary income
- California gambling tax applies to all forms
California Lottery Tax Details: California taxes gambling winnings as ordinary income using progressive rates. For lottery winners, this means your California lottery tax rate depends on your total income including the winnings. The state doesn't withhold taxes upfront, but you'll owe when filing.
🗽 New York Lottery Tax
- New York State: Up to 10.9%
- NYC adds up to 3.876% additional
- New York lottery tax among highest in nation
- Combined rate can exceed 14.7%
- New York gambling tax applies to all winnings
New York Gambling Tax Breakdown: New York has some of the highest gambling taxes in the nation. The New York lottery tax rate is progressive, reaching 10.9% for high earners. NYC residents face additional city tax, making New York lottery winnings heavily taxed.
🌺 Hawaii
- No legal gambling in Hawaii
- Winnings from other states taxed up to 11%
- High progressive tax rates apply
🌲 Oregon
- Oregon lottery tax reaches 9.9%
- Video lottery winnings taxed same rate
- High earners pay maximum rate
🌾 Minnesota
- Progressive rates up to 9.85%
- Minnesota lottery winnings heavily taxed
- Charitable gambling also taxed
🍎 New Jersey Gambling Tax
- NJ gambling tax reaches 10.75%
- Atlantic City casino winnings taxed
- New Jersey lottery tax calculator needed for accuracy
- Online sports betting winnings taxed
🏛️ Washington D.C.
- DC lottery winnings taxed up to 10.75%
- Progressive rates apply
- Federal district has high tax burden
🌻 Maryland
- Maryland lottery tax reaches 8.75%
- Local taxes may add 3.2% more
- Casino winnings fully taxable
🍁 Vermont
- Progressive rates up to 8.75%
- Vermont lottery winnings taxed as income
- Small state, fewer big winners
Moderate Tax States (3-8%)
🏖️ Illinois Gambling Tax Calculator
- Illinois gambling tax is flat 4.95%
- Illinois lottery tax calculator simple due to flat rate
- Chicago casinos winnings taxed same rate
- Sports betting tax at 4.95%
Illinois Lottery Tax Details: Illinois uses a flat tax rate of 4.95% on all gambling winnings, making the Illinois lottery tax calculator straightforward. Whether you win the Illinois Lottery, at a Chicago casino, or through sports betting, the rate remains the same.
🎲 Pennsylvania Gambling Tax
- Pennsylvania lottery tax is flat 3.07%
- PA gambling tax among lowest flat rates
- Casino winnings taxed at same rate
- Local taxes may apply (Philadelphia 3.79%)
Pennsylvania Lottery Tax Info: Pennsylvania has a relatively low flat tax rate on gambling winnings. The Pennsylvania lottery tax calculator is simple - multiply winnings by 3.07%. Philadelphia residents pay additional city tax.
🌽 Michigan Lottery Tax Calculator
- Michigan lottery tax is flat 4.25%
- Detroit casino winnings same rate
- Online gambling taxed identically
- Michigan lottery tax calculator straightforward
Michigan Gambling Tax Details: Michigan uses a flat 4.25% tax rate on all gambling winnings. The Michigan lottery tax calculator applies this rate to lottery prizes, casino winnings, and online gambling profits equally.
🏺 Ohio Gambling Tax
- Ohio lottery tax reaches 3.99%
- Progressive rates apply
- Casino and racino winnings taxed
- Sports betting subject to same rates
🌵 Arizona
- Arizona lottery tax is flat 2.5%
- Tribal casino winnings may be exempt
- Low rate compared to neighbors
🏔️ Colorado
- Colorado lottery tax is flat 4.4%
- Mountain casino winnings taxed same
- Sports betting profits taxable
🌈 Indiana
- Indiana lottery tax is flat 3.15%
- Hoosier Lottery winnings taxed
- Riverboat casino profits taxable
🏛️ Massachusetts
- Massachusetts lottery tax is flat 5%
- State lottery popular, heavily played
- Casino winnings taxed same rate
🍑 Georgia
- Georgia lottery tax up to 5.75%
- Progressive rates apply
- HOPE scholarship funded by lottery
🌲 North Carolina Lottery Tax
- NC lottery tax is flat 5.25%
- North Carolina Education Lottery taxed
- Cherokee casino winnings may differ
🌻 Wisconsin
- Wisconsin lottery tax up to 7.65%
- Progressive rates based on income
- Tribal casino winnings may be exempt
🦀 Virginia
- Virginia lottery tax up to 5.75%
- New casinos mean more taxable wins
- Sports betting winnings taxed
🌺 South Carolina
- SC lottery tax up to 7%
- Education Lottery funds schools
- Progressive tax rates apply
🦞 Connecticut
- Connecticut lottery tax up to 6.99%
- Mohegan Sun/Foxwoods winnings taxed
- Online gambling also taxable
⚓ Rhode Island
- Rhode Island lottery tax up to 5.99%
- Twin River casino winnings taxed
- Small state, big tax impact
🏛️ Delaware
- Delaware lottery tax up to 6.6%
- No sales tax but income tax applies
- Casino winnings fully taxable
🦌 Maine
- Maine lottery tax up to 7.15%
- Progressive rates apply
- Casino winnings taxed same
🦫 Arkansas
- Arkansas lottery tax up to 4.9%
- Scholarship lottery funds education
- Casino winnings taxable
🥔 Idaho
- Idaho lottery tax up to 5.8%
- Tribal casino winnings may differ
- Progressive rates apply
🌾 Iowa
- Iowa lottery tax up to 6%
- Riverboat casino winnings taxed
- Progressive rates based on income
🌻 Kansas
- Kansas lottery tax up to 5.7%
- State-owned casinos mean tax applies
- Progressive rates used
🐴 Kentucky
- Kentucky lottery tax is flat 4.5%
- Horse racing winnings also taxed
- Simple flat rate calculation
🎷 Louisiana
- Louisiana lottery tax up to 4.25%
- New Orleans casino winnings taxed
- Riverboat gambling taxable
🌻 Mississippi
- Mississippi lottery tax up to 5%
- Gulf Coast casino winnings taxed
- Newest state lottery (2019)
⛰️ Missouri
- Missouri lottery tax up to 5.4%
- Riverboat casino winnings taxed
- Progressive rates apply
🏔️ Montana
- Montana lottery tax up to 6.75%
- Limited gambling options
- Progressive tax structure
🌽 Nebraska
- Nebraska lottery tax up to 6.84%
- Progressive rates apply
- Casino gambling newly legalized
🏜️ New Mexico
- New Mexico lottery tax up to 5.9%
- Tribal casino winnings may differ
- Progressive tax rates
🌾 North Dakota
- North Dakota lottery tax up to 2.9%
- Charitable gaming also taxed
- Low rates compared to neighbors
⛈️ Oklahoma
- Oklahoma lottery tax up to 4.75%
- Tribal casino winnings complex
- Progressive rates apply
🏜️ Utah
- No legal gambling in Utah
- Out-of-state winnings taxed at 4.85%
- Flat rate on all income
⛰️ West Virginia
- West Virginia lottery tax up to 6.5%
- Casino and racetrack winnings taxed
- Progressive rates apply
🌺 Alabama
- No state lottery in Alabama
- Out-of-state winnings taxed up to 5%
- Progressive tax structure
State Comparison Tool: Taxes on Lottery Winnings Calculator by State
If You Won $1 Million in the Lottery...
💰 Best: Florida
State Tax: $0
You Keep: $1,000,000
😱 Worst: California
State Tax: $133,000
You Keep: $867,000
📊 Average State
State Tax: ~$50,000
You Keep: $950,000
🗽 NYC Resident
Combined: $147,000
You Keep: $853,000
California Lottery Tax Calculator - Complete Guide
California taxes lottery winnings as ordinary income using progressive rates from 1% to 13.3%. The California lottery tax calculator must account for your total income including winnings. For example, winning the California Lottery jackpot of $10 million would result in approximately $1.33 million in state taxes. California doesn't withhold taxes from lottery prizes, but quarterly estimated payments may be required. The state's mental health tax adds 1% for income over $1 million, making California gambling tax among the highest nationwide.
Key California Lottery Tax Facts: No automatic withholding • Progressive rates apply • Mental health tax on big wins • Quarterly payments often required • All gambling types taxed equally
New York Lottery Tax Calculator - NYC & State Rates
New York lottery tax rates are among the nation's highest, with state tax up to 10.9% plus NYC tax up to 3.876% for city residents. The New York lottery tax calculator must consider both state and potential city taxes. A $1 million New York Lottery win could result in $109,000 state tax, plus $38,760 city tax for NYC residents. New York gambling tax applies to all forms including lottery, casino, and sports betting. The state requires automatic withholding on prizes over $5,000.
New York Gambling Tax Details: Automatic withholding required • NYC adds extra tax • Progressive rates to 10.9% • Yonkers residents pay additional 1.477% • All gambling winnings taxable
Florida Gambling Tax - Tax-Free State Advantage
Florida has no state income tax on lottery winnings, making it one of the best states for gamblers. The Florida Lottery offers tax-free winnings at the state level, though federal taxes still apply. This means a $10 million Powerball win in Florida saves over $1 million compared to California. Florida gambling tax advantages extend to all forms including lottery, casino, and sports betting. Many big winners establish Florida residency before claiming prizes to avoid state taxes.
Florida Tax Benefits: No state income tax • Federal taxes still apply • Popular for lottery winners • Residency rules matter • All gambling winnings state tax-free
Texas Lottery Tax Calculator - Zero State Tax
Texas lottery tax at the state level is zero, as Texas has no state income tax. The Texas Lottery offers significant tax advantages compared to neighboring states. Texas gambling tax policy means lottery winners keep more of their prizes, though federal tax on lottery winnings still applies. A $5 million Texas Lottery jackpot saves approximately $250,000 compared to winning in neighboring Louisiana. Texas residents winning out-of-state lotteries also pay no Texas tax on those winnings.
Texas Lottery Tax Advantages: No state income tax • Federal tax still owed • Better than all neighbors • No tax on out-of-state wins • Popular for big jackpots
Illinois Lottery Tax Calculator - Flat Rate Simplicity
Illinois gambling tax uses a simple flat rate of 4.95% on all winnings. The Illinois lottery tax calculator is straightforward - multiply your winnings by 0.0495. Illinois lottery winnings face automatic withholding for prizes over $1,000. Chicago doesn't add city tax on gambling winnings, unlike NYC. The Illinois Lottery funds education and infrastructure through tax revenue. Sports betting winnings in Illinois face the same 4.95% flat tax rate.
Illinois Gambling Tax Facts: Flat 4.95% rate • Simple calculation • Automatic withholding • No Chicago city tax • All gambling types taxed equally
Pennsylvania Lottery Tax Calculator - Low Flat Rate
Pennsylvania lottery tax is a flat 3.07%, among the lowest flat rates nationally. The PA gambling tax calculator is simple due to the flat structure. Pennsylvania Lottery winnings over $5,000 trigger automatic withholding. Philadelphia residents pay an additional 3.79% city tax on gambling winnings. Casino winnings from Pennsylvania's many venues face the same 3.07% state rate. The Pennsylvania lottery tax rate makes it attractive compared to neighboring New York and Maryland.
PA Lottery Tax Information: Low 3.07% flat rate • Philadelphia adds city tax • Automatic withholding • Better than most neighbors • Simple calculation
Michigan Lottery Tax Calculator - Moderate Flat Tax
Michigan lottery tax uses a flat 4.25% rate on all gambling winnings. The Michigan lottery tax calculator simply multiplies winnings by 0.0425. Detroit's three casinos generate winnings taxed at the same rate, with no additional city tax. Michigan lottery winnings over $5,000 face automatic state withholding. Online gambling winnings in Michigan, including online lottery, face identical taxation. The rate is moderate compared to neighboring states.
Michigan Gambling Tax Summary: Flat 4.25% rate • No Detroit city tax • Automatic withholding • Online gambling taxed same • Moderate vs neighbors
New Jersey Lottery Tax Calculator - High Progressive Rates
New Jersey gambling tax reaches 10.75% for high earners, among the nation's highest. The NJ lottery tax calculator must account for progressive rates based on total income. Atlantic City casino winnings face the same high rates as lottery prizes. New Jersey lottery winnings trigger automatic withholding above $5,000. Online sports betting winnings, now legal in NJ, face identical tax treatment. The high rates make New Jersey less attractive than neighboring Pennsylvania for gamblers.
NJ Gambling Tax Details: Progressive to 10.75% • High vs neighbors • Atlantic City winnings taxed • Online betting taxed • Automatic withholding applies
Ohio Lottery Tax Calculator - Low Progressive Rates
Ohio lottery tax uses progressive rates topping at 3.99%, relatively low nationally. The Ohio lottery tax calculator factors in graduated rates based on income levels. Ohio's four casinos and seven racinos generate winnings taxed identically to lottery. Sports betting winnings in Ohio face the same tax treatment. The Ohio Lottery funds education through tax revenue. Automatic withholding applies to prizes exceeding $5,000.
Ohio Gambling Tax Facts: Progressive to 3.99% • Low vs neighbors • Casinos taxed same • Sports betting included • Education funding priority
North Carolina Lottery Tax Calculator - Education Funding
North Carolina lottery tax is a flat 5.25% on all gambling winnings. The NC Education Lottery specifically funds state education programs. The North Carolina lottery tax calculator uses simple multiplication by 0.0525. Cherokee casino winnings may have different tax treatment due to tribal sovereignty. NC lottery winnings over $5,000 trigger automatic state withholding. The rate is moderate compared to neighboring states like South Carolina (7%) and Virginia (5.75%).
NC Lottery Tax Information: Flat 5.25% rate • Funds education • Cherokee casinos differ • Automatic withholding • Moderate regional rate
International Gambling Tax Comparison - 23 Countries
Tax-Free Countries (Recreational Players)
- United Kingdom - All gambling winnings tax-free
- Canada - Lottery and gambling winnings are "windfalls"
- Australia - Not considered assessable income
- Ireland - No tax on gambling winnings
- New Zealand - Tax-free even for professionals
- South Africa - Tax-free from licensed operators
- Singapore - Tax-free but casino entry levy for citizens/PRs
- Austria - Tax-free for recreational players
Countries with Gambling Taxes
| Country | Tax Rate | Key Details | Official Source |
|---|---|---|---|
| Japan | ~50% (Simplified) | After ¥500,000 deduction; actual rates 5-45% | NTA |
| India | 31.2% | TDS on all net winnings including lottery | PIB |
| Netherlands | 30.5% | On prizes over €449 | Belastingdienst |
| USA | 24-37% + State | Federal + 0-13.3% state | IRS |
| South Korea | 22% / 33% | 22% lottery (>₩50M), 33% other gambling | NTS |
| Italy | 20-25% | 20% lottery/keno, 25% sports/casino/poker | ADM |
| Mexico | Up to 21% | Federal 1% + State up to 20% | SAT |
| Spain | 20% | On state lottery amounts over €40,000 | AEAT |
| Portugal | 20% | Stamp duty on prizes over €5,000 | AT |
| Philippines | 20% | On winnings over ₱10,000 | NTRC |
| Brazil | 15% | On lottery prizes over R$2,112.00 | Receita Federal |
| France | 13.7% Social Levy | Casino winnings >€1,500 only; lottery tax-free | Legifrance |
| Belgium | 11% | On all gambling winnings | SPF Finances |
| Germany | 5.3% (on Stakes) | Tax on bets, not winnings | BMF |
| Switzerland | Up to 35% | Canton-based on lottery >CHF 1M | ESTV |
Tax Planning Strategies for Gambling Winnings
For US Players
- Track All Losses: Gambling losses are deductible up to winnings amount (itemized deduction only)
- Keep Detailed Records: Date, type of gambling, location, amounts won/lost, W-2Gs
- Timing Matters: Consider spreading large wins across tax years if possible
- State Shopping: Consider playing in states with lower or no income tax
- Professional Status: May benefit high-volume players with significant expenses
- Estimated Taxes: Make quarterly payments to avoid penalties on large wins
- Annuity vs. Lump Sum: For lottery wins, annuity payments may result in lower overall tax
- Leverage Bonuses: Compare the best sportsbook bonuses to maximize your bankroll - winnings from bonus funds are taxable, so plan accordingly.
For International Players
- Residency Planning: Consider tax implications of where you're resident
- Professional Status: Understand when gambling becomes taxable business
- Record Keeping: Maintain logs even in tax-free countries
- Cross-Border Wins: Check tax treaties for international gambling
- Currency Conversion: Track exchange rates for foreign winnings
Frequently Asked Questions
Are gambling winnings taxable?
In the USA, yes - all gambling winnings are taxable income, with federal tax of 24-37% plus state taxes of 0-13.3%. In the UK, Canada, Australia, and many other countries, recreational gambling winnings are tax-free. Use our calculator above to determine your specific tax obligation.
How much tax do I pay on lottery winnings?
In the USA, lottery winnings over $5,000 have 24% federal tax withheld automatically, plus state taxes ranging from 0% to 13.3%. Large jackpots may be taxed up to 37% federal plus state taxes. Most other countries including UK, Canada, and Australia don't tax lottery winnings. Our lottery tax calculator provides exact calculations for your situation.
Do I have to pay taxes on online gambling winnings?
Yes, in the USA all gambling winnings are taxable income, whether from online or land-based gambling. The IRS requires you to report all winnings, even if no W-2G is issued. In most other countries, online gambling winnings are tax-free for recreational players. Most online betting happens through mobile - explore our ranking of the best betting apps for secure wagering.
Are casino winnings taxable?
In the USA, all casino winnings are taxable. Casinos must issue W-2G forms for slot winnings of $1,200+, keno winnings of $1,500+, and poker tournament net winnings over $5,000. Table game winnings are also taxable but usually don't trigger W-2G reporting. In the UK, Canada, and Australia, casino winnings are tax-free.
Which states have no gambling tax?
Nine states have no state income tax on gambling winnings: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. However, federal taxes still apply to all US gambling winnings regardless of state.
Can I deduct gambling losses?
In the USA, you can deduct gambling losses up to the amount of your winnings if you itemize deductions. You must keep detailed records of all wins and losses. Professional gamblers can deduct expenses as business deductions. This only applies to US taxpayers.
What's the difference between withholding and actual tax owed?
Withholding is the amount taken upfront from your winnings (24% federal in USA). Your actual tax owed depends on your total income and tax bracket (10-37%). If withholding exceeds your actual tax, you'll receive a refund. If your actual tax exceeds withholding, you'll owe additional tax when filing. Our calculator shows both amounts.
Do I pay California state tax on gambling winnings?
Yes, California taxes gambling winnings at progressive rates from 1% to 12.3%, plus an additional 1% mental health tax on income over $1 million, for a maximum rate of 13.3%. The rate depends on your total income including the winnings.
Are sports betting winnings taxable?
In the USA, all sports betting winnings are taxable. A W-2G is issued for wins of $600+ that are also 300x your wager. In the UK, Canada, and Australia, sports betting winnings are tax-free for recreational bettors. For platform-specific information, see our FanDuel sportsbook review.
What makes someone a professional gambler for tax purposes?
Tax authorities consider factors like: gambling is your primary income source, you gamble regularly and systematically, you maintain detailed records, you study and improve your methods, and you depend on winnings for livelihood. Professional status usually means paying income tax even in tax-free countries.
Is there a federal gambling tax calculator available?
Yes, our calculator above includes federal gambling tax calculations for all types of winnings, automatically computing both the 24% withholding and your actual tax liability based on tax brackets.
Important Tax Disclaimers
Professional Consultation Recommended: This calculator provides estimates for educational purposes only. Tax laws are complex, change frequently, and vary by jurisdiction. Always consult with a qualified tax professional for advice specific to your situation. This tool is not a substitute for professional tax advice.
Data Accuracy: While we strive to maintain accurate and up-to-date information, tax laws can change. All rates and thresholds are current as of August 29, 2025. Users should verify current rates with official tax authorities.
Record Keeping: Regardless of your country's tax laws, maintain detailed records of all gambling activities including:
- Date and type of gambling activity
- Name and location of gambling establishment
- Names of people present
- Amount won or lost
- Documentation (receipts, tickets, W-2Gs, bank statements)
Related Pages
- View all 30 Free Betting Calculators
- Try our Parlay Calculator
- Use the Odds Converter
- Check out All Sports coverage
- Read our Sports Betting Guides
- Learn about Responsible Gambling
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