How to use the gambling winnings tax calculator
- 1 Enter your gambling winnings for the year.
- 2 Enter your gambling losses, from your records.
- 3 Enter your other itemized deductions (0 if you take the standard deduction).
- 4 Enter your filing status, other income and any W-2G withholding, then read the tax.
Worked example
A single filer with $70,000 of other income and $20,000 of other itemized deductions who won $10,000 and lost $10,000. The real result is zero, but only $9,000 of losses (90%) is deductible, so $1,000 is taxed. The extra federal tax is $180, against $0 under the 2025 rule.
Handling gambling taxes
- Keep a session log of wins and losses.
- Save W-2Gs and app statements.
- Plan for the 90% loss limit from 2026.
- Set money aside when no tax is withheld.
Check big prizes with the Lottery Tax Calculator, compare deductions with the Standard vs Itemized Deduction Calculator, and pay during the year with the Estimated Tax Calculator.
Features
2026 loss limit
Only 90% of losses are deductible, up to winnings.
Itemizing check
Losses help only when itemized deductions beat the standard deduction.
Old vs new rule
Shows the cost of the new limit against 2025.
When to use it
Sports betting
Track every bet: winnings are taxable even without a form. See your bracket with the Tax Bracket Calculator.
Casino trips
Slot wins over $2,000 now get a W-2G.
Lottery prizes
Big wins have their own rules. Use the Lottery Tax Calculator.
Planning tax payments
Pay during the year with the Estimated Tax Calculator.
Related Tax tasks
Frequently asked questions
Are gambling winnings taxable?
Yes. All gambling winnings are taxable income, including casino games, slots, sports betting, poker, horse racing, lotteries, raffles and online gambling, whether or not you receive a Form W-2G.
What changed for gambling losses in 2026?
The One Big Beautiful Bill Act limits the deduction to 90% of your losses, still capped at your winnings. Someone who won $10,000 and lost $10,000 can deduct only $9,000, so $1,000 is taxed.
Do I need to itemize to deduct gambling losses?
Yes, for recreational gamblers. Losses are an itemized deduction on Schedule A, so they help only if your total itemized deductions are more than the standard deduction.
What is the W-2G threshold for 2026?
$2,000 for slot machines and bingo (up from $1,200) and for keno, and over $5,000 for poker tournaments. Other thresholds apply to other types of bets; all winnings are taxable either way.
How much is withheld from gambling winnings?
24% federal withholding applies to most winnings over $5,000 when the payout is at least 300 times the bet, and to winnings when you do not give a Social Security number. Withholding is credited on your return.
Can losses be more than my winnings?
You can lose more, but the deduction is capped at your winnings. Net losses cannot reduce other income and cannot be carried forward.
What records should I keep?
A log of each session: date, place, game, amounts won and lost, plus W-2Gs, betting app statements, bank records and receipts. The IRS can deny losses you cannot prove.
How are professional gamblers taxed?
They report on Schedule C and can deduct losses and expenses without itemizing, but the 90% limit applies to losses and expenses, and they pay self-employment tax.
Do I pay state tax on gambling winnings?
Most states with an income tax tax gambling winnings, and the state where you won may tax them too, with a credit at home. Some states do not allow losses at all.
Can Congress change the 90% rule?
Bills have been introduced to restore the full deduction. The calculator uses the law in force for 2026.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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