Sports betting winnings tax in 2026
Every win is taxable income, whether or not a form is issued. The calculator adds it to your other income and shows the federal and state tax it adds with the 2026 brackets.
How a sportsbook reports and withholds
A sportsbook files a Form W-2G when a win reaches the reporting threshold ($2,000 for payments made in 2026) and is at least 300 times the stake, which mostly means long-odds parlays and futures. It withholds 24% for the IRS only when such a win, minus the stake, is more than $5,000. Most winning bets meet neither test, so nothing is withheld and no form arrives, but every win is still taxable income.
Your net result is not the taxable amount
You report your winnings, and your losses count only as an itemized deduction on Schedule A: from 2026, 90% of them, and never more than the winnings. A bettor who takes the standard deduction cannot use losses at all. Keep a record of every bet or download your account history from the sportsbook: date, stake, result.
State tax
Most states tax winnings as income too; nine have no income tax on them. See every state.
Rules: IRS Instructions for Forms W-2G (01/2026) and IRC 165(d) as amended in 2025. See the 2026 federal rules. Estimates, not tax advice. If gambling stops being fun, free help is available.
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