Gambling winnings tax calculator (2026)
From 2026, only 90% of gambling losses are deductible, so a year where you broke even can still leave a tax bill. Enter your winnings, losses and other income to see the extra federal tax and what you owe after withholding.
21+ in most states. If gambling stops being fun, free confidential help is available 24/7: call or text 1-800-GAMBLER (National Council on Problem Gambling).
How gambling winnings are taxed in 2026
- All winnings are added to your income and taxed at your ordinary federal rates (10% to 37%).
- Losses are deductible only if you itemize, at 90% of the amount you lost, and never more than you won.
- Tax withheld by the casino, sportsbook or lottery (box 4 of Form W-2G) counts towards the bill.
deductible losses = min(90% × losses, winnings), claimed only if your itemized deductions beat the standard deduction.
Worked examples
Winnings with losses, standard deduction
Single, $60,000.00 other income, $10,000.00 won, $8,000.00 lost. The standard deduction ($16,100.00) beats itemizing, so the losses do not count. Extra federal tax: $1,550.00.
A break-even year, itemizing
Single, $80,000.00 other income, $20,000.00 of other itemized deductions, $50,000.00 won and $50,000.00 lost. Deductible losses: $45,000.00. Extra federal tax: $1,100.00, against $0.00 under the old rule.
Tax on a break-even year, by size
| Won and lost | Losses deducted | Extra federal tax (2026) | Before 2026 |
|---|---|---|---|
| $10,000.00 | $9,000.00 | $220.00 | $0.00 |
| $25,000.00 | $22,500.00 | $550.00 | $0.00 |
| $50,000.00 | $45,000.00 | $1,100.00 | $0.00 |
| $100,000.00 | $90,000.00 | $2,200.00 | $0.00 |
| $250,000.00 | $225,000.00 | $5,500.00 | $0.00 |
Single filer, $80,000.00 other income, $20,000.00 other itemized deductions, no state tax.
What this calculator leaves out
Tax credits, the alternative minimum tax, net investment income tax, deductions and credits that phase out as income rises, the taxable share of Social Security, professional gambler rules and state or local rules. Higher income from winnings can change some of these. The optional state rate is applied to winnings minus deducted losses as a rough guide.
Questions
Are gambling winnings taxable in 2026?
Yes. All gambling winnings are taxable income, including sports betting, casino, poker, lottery and sweepstakes prizes, whether or not you receive a Form W-2G.
What is the 90% gambling loss rule?
From the 2026 tax year you can deduct only 90% of your gambling losses, and only up to your winnings. Someone who wins $50,000 and loses $50,000 can deduct $45,000, so $5,000 is taxed even though they broke even.
Do I have to itemize to deduct gambling losses?
Yes. Gambling losses are an itemized deduction on Schedule A. If your itemized deductions are below the standard deduction ($16,100.00 single, $32,200.00 married filing jointly in 2026), the losses do not lower your tax.
When does a casino or sportsbook withhold tax?
Payers withhold 24% when winnings minus the wager are more than $5,000.00 from lotteries, sweepstakes, wagering pools, and racing or sports bets paying at least 300 times the stake. Slots, bingo and keno have no regular withholding.
What is the W-2G threshold for 2026?
$2,000.00 for payments made in 2026, up from $1,200 for slots and bingo and $1,500 for keno. It will rise with inflation after 2026. Winnings below the threshold are still taxable.
Sources
- Rev. Proc. 2025-32, section 4.01 (2026 tax rate tables) and 4.14 (standard deduction)
- IRS proposed §1.165-10, Internal Revenue Bulletin 2026-19 (90% wagering loss limit, P.L. 119-21 §70114)
- Instructions for Forms W-2G and 5754 (Rev. January 2026)
- IRS Topic no. 419, Gambling income and losses
Checked 2026-11-06. The 90% rule is law (P.L. 119-21); the IRS regulation implementing it is still proposed. Bills to restore the 100% deduction have been introduced in Congress but not passed. This is an estimate for planning, not tax advice; a tax professional can check your full return.