2026 tax year
Gambling tax calculator
New for 2026: you can win and lose the same amount and still owe tax on the difference.
Gambling winnings, lottery, sports betting, casino, poker, are fully taxable ordinary income, reported whether or not you receive a W-2G. Losses deduct only if you itemize, and for 2026 a new law caps that deduction at 90% of losses. So a bettor who broke even now owes tax on 10% of their winnings. This shows the real bill.
All of it, every win, not your net.
Mortgage interest, SALT, charity, losses only help if you itemize.
Enter your winnings and losses.
Worked example, $50,000 won, $50,000 lost
An Ohio filer with $80,000 of other income wins $50,000 and loses $50,000, a break-even year on paper:
| Line | Amount |
|---|---|
| Winnings (taxable income) | $50,000 |
| Deductible losses (90%, if itemizing) | − $45,000 |
| Losses you cannot deduct | $5,000 |
| Federal tax caused | $1,100 |
| Ohio tax caused | $1,375 |
| Total tax on a break-even year | $2,475 |
Despite winning and losing the same $50,000, this filer owes $2,475. Federally, the 90% cap leaves $5,000 of losses non-deductible, so that slice of winnings is taxed. Ohio, like most states, allows no loss deduction at all, taxing the full $50,000 of winnings.
Questions
Do I owe tax if I broke even?
For 2026, yes. The One Big Beautiful Bill limited the wagering-loss deduction to 90% of losses (still capped at winnings), effective for tax years beginning after 2025. So even a break-even gambler is taxed on 10% of their winnings federally, and on the full amount in states that disallow loss deductions.
Are gambling losses deductible at all?
Only if you itemize, only up to your winnings, and now only at 90%. If you take the standard deduction, as most people do, your losses do nothing, and you are taxed on your gross winnings. You also need records: a gambling diary, W-2Gs, and statements.
What is a W-2G, and does it change what I owe?
A W-2G is the form a payer issues for larger wins (thresholds vary by game), often with 24% federal tax withheld. It does not change what you owe, all winnings are taxable whether or not a W-2G is issued. The withholding is a prepayment credited on your return.
Do I pay state tax on winnings won in another state?
Often both states have a claim: the state where you won and your home state, with a credit to avoid double tax. A few states tax nonresidents' gambling winnings heavily. Winnings can also raise income-based figures, ACA subsidies, IRMAA, the taxable portion of Social Security, beyond the direct tax.
What about professional gamblers?
A professional gambler reports on Schedule C and can deduct losses and expenses against winnings as a business. But pays self-employment tax on net profit, and the 90% loss limit still applies. Whether you qualify as a professional is a facts-and-circumstances test, not a choice.
Related tools
- Quarterly tax calculator set aside for a big win
- Benefits calculator winnings and Social Security
- 1099 tax calculator for professional gamblers
Estimate for the 2026 tax year. Winnings are always reportable; keep records for losses. State treatment varies widely. Not tax advice.