Sports betting taxes by state
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Gambling winnings are taxable income in the United States. That includes every sports bet that finishes ahead — the IRS treats your net winnings as ordinary income, and you are responsible for reporting them whether or not a sportsbook sends you a form.
There are two layers to think about: federal tax, which applies everywhere, and state income tax, which depends entirely on where you live. The table below summarises the state layer for all 50 states plus the District of Columbia.
Federal tax on betting winnings
All gambling winnings are reported as income on your federal return. Sportsbooks file a Form W-2G when a payout clears certain thresholds and may withhold 24% for federal tax at that point — but you owe tax on smaller wins too, even with no form issued.
You can deduct gambling losses only if you itemize, and only up to the amount you won; the federal rules never let you claim a net loss.
State income tax on winnings
Gambling winnings are taxed as ordinary income in every state with a personal income tax. 9 states levy no broad personal income tax at all, so they take no state cut of your winnings.
| State | Income tax on winnings | Notes |
|---|---|---|
| Alabama | Up to 5.0% | — |
| Alaska | None | No state personal income tax. |
| Arizona | 2.5% (flat) | — |
| Arkansas | Up to 3.9% | — |
| California | Up to 13.3% | Highest top marginal rate in the US. |
| Colorado | 4.4% (flat) | — |
| Connecticut | Up to 6.99% | Gambling losses cannot be deducted on the Connecticut return. |
| Delaware | Up to 6.6% | — |
| District of Columbia | Up to 10.75% | Taxed under the District’s graduated income tax. |
| Florida | None | No state personal income tax. |
| Georgia | 5.39% (flat) | — |
| Hawaii | Up to 11.0% | — |
| Idaho | 5.695% (flat) | — |
| Illinois | 4.95% (flat) | Illinois does not allow a deduction for gambling losses. |
| Indiana | 3.0% (flat) | Plus county income tax. |
| Iowa | 3.8% (flat) | — |
| Kansas | Up to 5.7% | — |
| Kentucky | 4.0% (flat) | — |
| Louisiana | 3.0% (flat) | — |
| Maine | Up to 7.15% | — |
| Maryland | Up to 5.75% | Plus county/local income tax. |
| Massachusetts | 5.0% (flat) | 4% surtax on income over $1M. |
| Michigan | 4.25% (flat) | — |
| Minnesota | Up to 9.85% | — |
| Mississippi | 4.4% (flat) | A 3% nonrefundable tax is withheld on gaming establishment winnings. |
| Missouri | Up to 4.7% | — |
| Montana | Up to 5.9% | — |
| Nebraska | Up to 5.84% | — |
| Nevada | None | No state personal income tax. |
| New Hampshire | None | No tax on wages or gambling winnings. |
| New Jersey | Up to 10.75% | — |
| New Mexico | Up to 5.9% | — |
| New York | Up to 10.9% | New York City and Yonkers add a local income tax. |
| North Carolina | 4.25% (flat) | No itemized deduction for gambling losses. |
| North Dakota | Up to 2.5% | — |
| Ohio | Up to 3.5% | Gambling losses cannot be deducted on the Ohio return. |
| Oklahoma | Up to 4.75% | — |
| Oregon | Up to 9.9% | — |
| Pennsylvania | 3.07% (flat) | — |
| Rhode Island | Up to 5.99% | — |
| South Carolina | Up to 6.2% | — |
| South Dakota | None | No state personal income tax. |
| Tennessee | None | No tax on wages or gambling winnings. |
| Texas | None | No state personal income tax. |
| Utah | 4.55% (flat) | No deduction for gambling losses. |
| Vermont | Up to 8.75% | — |
| Virginia | Up to 5.75% | — |
| Washington | None | No income tax on gambling winnings. |
| West Virginia | Up to 4.92% | — |
| Wisconsin | Up to 7.65% | Gambling losses cannot be deducted on the Wisconsin return. |
| Wyoming | None | No state personal income tax. |
Frequently asked questions
- Do I have to pay taxes on sports betting winnings?
- Yes. The IRS treats all gambling winnings as taxable income, and you must report them whether or not the sportsbook sends you a tax form. Most states with a personal income tax also tax the same winnings.
- What is a W-2G and when will I get one?
- Form W-2G is the slip a sportsbook files when a payout clears certain thresholds. The book may also withhold 24% for federal tax up front. You still owe tax on smaller wins even if no W-2G is issued — the form is a reporting trigger, not the definition of taxable income.
- Can I deduct my betting losses?
- On the federal return you can deduct gambling losses only if you itemize, and only up to the amount of your winnings — you cannot show a net loss. Several states (noted in the table) disallow a loss deduction entirely, so you can owe state tax on gross winnings.
- Which states don't tax betting winnings?
- The 9 states with no broad personal income tax — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — levy no state income tax on gambling winnings. Federal tax still applies everywhere.
Educational content for informational purposes only. Not betting, financial, or tax advice. Please gamble responsibly. 21+ where applicable.