Lottery and Gambling Winnings Tax Calculator

Gamble Tax Calculator

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In the United States, all gambling winnings are taxable income, taxed as ordinary income at federal rates of 10-37% (with 24% withheld on large wins) plus state taxes ranging from 0% to 13.3%. Countries like the UK, Canada, and Australia do not tax recreational gambling winnings at all.

• USA: 10-37% federal + 0-13.3% state tax (all winnings taxable)
• UK, Canada, Australia: Tax-free for recreational players
• Singapore, Austria: Tax-free (Singapore has casino entry levy)
• Switzerland: Canton-based, up to 35% on lottery over CHF 1M
• Belgium: 11% on all gambling winnings
• Portugal: 20% stamp duty on prizes over €5,000
• South Korea: 22% lottery (over ₩50M), 33% other gambling
• France: 13.7% on casino winnings over €1,500 (lottery tax-free)
• Italy: 20% lottery/keno, 25% sports/casino/poker
• Brazil: 15% on lottery winnings over R$2,112.00
• Highest Tax: Japan at 50% (simplified, after deduction)
• Most Complex: USA with federal + state variations

Are Gambling Winnings Taxable? Complete Guide by Country

The taxation of gambling winnings varies dramatically worldwide. In the United States, all gambling winnings are taxable income, including lottery, casino, sports betting, and even small raffle prizes. However, many countries like the United Kingdom, Canada, and Australia don’t tax recreational gambling winnings at all.

Countries Where Gambling Winnings ARE Taxable

• United States: All winnings taxable (federal 10-37% + state 0-13.3%)
• Italy: 20-25% depending on game type
• Spain: 20% on amounts over €40,000
• Netherlands: 30.5% on prizes over €449
• Japan: Progressive rates up to 50%
• India: 31.2% TDS on all online winnings
• Philippines: 20% on winnings over ₱10,000
• Brazil: 15% on lottery prizes over R$2,112.00
• Mexico: Up to 21% combined federal and state
• Belgium: 11% on all gambling winnings
• Portugal: 20% stamp duty on prizes over €5,000
• South Korea: 22% lottery (over ₩50M), 33% other gambling

Countries Where Gambling Winnings are Tax-Free

• United Kingdom: All gambling winnings tax-free for players
• Canada: Winnings considered “windfalls” – not taxed
• Australia: Not considered assessable income
• New Zealand: Tax-free even for professionals
• South Africa: Tax-free from licensed operators
• Singapore: Tax-free (but casino entry levy applies)
• Austria: Tax-free for recreational players
• Ireland: No tax on gambling winnings, meaning punters keep 100% of profits. Irish betting sites offer plenty of options for local bettors.

Special Tax Cases

• France: Only casino winnings over €1,500 taxed (13.7%); lottery and sports betting tax-free
• Germany: 5.3% tax on betting stakes, not winnings
• Switzerland: Canton-based system, lottery prizes over CHF 1,000,000 taxed up to 35%
• Professional Gamblers: May be taxed even in “tax-free” countries as business income

Lottery Tax Calculator Understanding Your Tax on Lottery Winnings

Lottery winnings are among the most heavily taxed forms of gambling income, especially in the United States. Our lottery tax guide helps you understand approximately how much you may owe on your lottery prize, whether it’s a small state lottery win or a massive Powerball jackpot.

USA Lottery Tax Breakdown

Federal Lottery Tax

• Automatic Withholding: 24% federal tax withheld on lottery prizes over $5,000
• Actual Tax Rate: Up to 37% depending on your tax bracket
• Additional Tax: You may owe more when filing if your rate exceeds 24%

State Lottery Tax by State (Highest to Lowest)

• Highest: Hawaii (11%), New York (10.9%, plus NYC tax), New Jersey and Washington D.C. (10.75%)
• No Tax States: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. California also exempts California Lottery prizes from state income tax.
• Average: Most states tax lottery winnings between 3-7%

International Lottery Tax Comparison

Country	Lottery Tax Rate	Key Details
United Kingdom	0%	All lottery winnings tax-free
Canada	0%	Lottery winnings are “windfalls” – not taxed
Australia	0%	Tax-free for all lottery prizes
Singapore	0%	Tax-free for all lottery prizes
Austria	0%	Tax-free for recreational players
France	0%	Lottery winnings are tax-free
Switzerland	Up to 35%	Canton-based, on prizes over CHF 1,000,000
Belgium	11%	Flat rate on all lottery winnings
Portugal	20%	On prizes over €5,000
South Korea	22%	On prizes over ₩50 million
Spain	20%	On state lottery prizes over €40,000
Italy	20%	Flat rate on all lottery winnings
Brazil	15%	On prizes over R$2,112.00

USA State-by-State Gambling Tax Guide All 50 States

Federal taxes on lottery and gambling winnings apply to all US residents, but state taxes vary dramatically. Use our state-by-state guide to determine your estimated tax liability for lottery winnings, casino profits, and sports betting payouts.

Tax-Free States (No State Income Tax on Gambling Winnings)

State	State Tax Rate	Key Details
Florida	0%	No state income tax on lottery winnings; federal tax still applies
Nevada	0%	No state income tax despite Las Vegas casinos; federal tax applies
Texas	0%	No state income tax; lottery prizes tax-free at state level
Washington	0%	No state income tax on lottery or gambling; tribal casino winnings not state taxed
Wyoming	0%	No state income tax; Cowboy Draw lottery winnings tax-free
Alaska	0%	No state income tax or lottery; winnings from other states not taxed
South Dakota	0%	No state income tax; Deadwood casino winnings state tax-free
Tennessee	0%	No state income tax on gambling; lottery winnings tax-free at state level
New Hampshire	0%	No state income tax on gambling; NH lottery prizes state tax-free

High Tax States (Over 8% State Tax)

State	Top Tax Rate	Key Details
California	1-13.3% Progressive	California Lottery prizes exempt; 1% mental health tax on income over $1M
New York	10.9%	NYC adds up to 3.876% additional; combined can exceed 14.7%
Hawaii	11%	No legal gambling; out-of-state winnings taxed up to 11%
Oregon	9.9%	Video lottery winnings taxed at the same rate
Minnesota	9.85%	Progressive rates; charitable gambling also taxed
New Jersey	10.75%	Atlantic City casino winnings taxed; online sports betting taxed
Washington D.C.	10.75%	DC lottery winnings taxed; progressive rates apply
Maryland	6.5% + local	Top state rate raised in 2025; county taxes push the combined rate past 9%
Vermont	8.75%	Progressive rates; lottery winnings taxed as income

Moderate and Low Tax States (Under 8%)

State	Top Tax Rate	Key Details
Illinois	4.95% Flat	Simple flat rate; Chicago casinos taxed at the same rate
Pennsylvania	3.07% Flat	Among lowest flat rates; Philadelphia adds 3.79% city tax
Michigan	4.25% Flat	Detroit casino winnings same rate; no additional city tax
Ohio	2.75% Flat	Flat rate from 2026 on income over $26,050; casinos and racinos taxed the same
Arizona	2.5% Flat	Tribal casino winnings may be exempt; low rate
Colorado	4.4% Flat	Mountain casino winnings taxed same; sports betting taxable
Indiana	2.95% Flat	Hoosier Lottery and casino profits taxable; county income taxes may apply
Massachusetts	5% (9% over ~$1.1M)	4% surtax on income over about $1.1 million hits big jackpots
Georgia	5.19% Flat	Flat rate; HOPE scholarship funded by lottery
North Carolina	3.99% Flat	Rate cut from 4.25% in 2026; Cherokee casino may differ
Wisconsin	7.65%	Progressive rates; tribal casino winnings may be exempt
Virginia	5.75%	New casinos mean more taxable wins; sports betting taxed
South Carolina	6%	Education Lottery funds schools; top rate now 6%
Connecticut	6.99%	Mohegan Sun/Foxwoods winnings taxed; online gambling also taxable
Rhode Island	5.99%	Twin River casino winnings taxed
Delaware	6.6%	No sales tax but income tax applies; casino winnings taxable
Maine	7.15%	Progressive rates; casino winnings taxed same
Arkansas	3.9%	Scholarship lottery funds education; casino winnings taxable
Idaho	5.3% Flat	Flat rate; tribal casino winnings may differ
Iowa	3.8% Flat	Flat rate since 2025; casino winnings taxed
Kansas	5.58%	State-owned casinos mean tax applies; progressive rates
Kentucky	3.5% Flat	Rate cut to 3.5% in 2026; horse racing winnings also taxed
Louisiana	3% Flat	Flat rate since 2025; casino and riverboat winnings taxable
Mississippi	4% Flat	Rate cut to 4% in 2026; Gulf Coast casino winnings taxed
Missouri	4.7%	Riverboat casino winnings taxed; progressive rates
Montana	5.65%	Limited gambling options; progressive tax structure
Nebraska	4.55%	Rate cut in 2026; casino gambling newly legalized
New Mexico	5.9%	Tribal casino winnings may differ; progressive rates
North Dakota	2.5%	Charitable gaming also taxed; low rates vs neighbors
Oklahoma	4.5%	Tribal casino winnings complex; progressive rates
Utah	4.5% Flat	No legal gambling; out-of-state winnings taxed at 4.5%
West Virginia	4.82%	Casino and racetrack winnings taxed; progressive rates
Alabama	5%	No state lottery; out-of-state winnings taxed up to 5%

State-Specific Detailed Guides

California Lottery Tax Complete Guide

California is a special case. California Lottery prizes, including Powerball and Mega Millions tickets bought in the state, are exempt from California income tax, so only federal tax applies. Every other kind of gambling winnings, from casino jackpots to sports betting and out-of-state lottery prizes, is taxed as ordinary income at progressive rates from 1% to 13.3%.

California doesn’t withhold state tax from gambling winnings, so quarterly estimated payments may be required on large casino or betting wins. The state’s mental health tax adds 1% for income over $1 million, making California’s tax on non-lottery gambling income among the highest nationwide.

New York Lottery Tax NYC and State Rates

New York lottery tax rates are among the nation’s highest, with state tax up to 10.9% plus NYC tax up to 3.876% for city residents. A $1 million New York Lottery win could result in $109,000 state tax, plus $38,760 city tax for NYC residents.

New York gambling tax applies to all forms including lottery, casino, and sports betting. The state requires automatic withholding on prizes over $5,000.

Florida Gambling Tax-Free State Advantage

Florida has no state income tax on lottery winnings, making it one of the best states for gamblers. The Florida Lottery offers tax-free winnings at the state level, though federal taxes still apply. This means a $10 million Powerball win in Florida saves about $1.09 million in state tax compared to New York, before New York City tax.

Florida gambling tax advantages extend to all forms including lottery, casino, and sports betting. Many big winners establish Florida residency before claiming prizes to avoid state taxes.

Texas Lottery Tax Zero State Tax

Texas lottery tax at the state level is 0, as Texas has no state income tax. The Texas Lottery offers significant tax advantages compared to neighboring states. A $5 million Texas Lottery jackpot saves approximately $250,000 compared to winning in neighboring Louisiana.

Texas residents winning out-of-state lotteries also pay no Texas tax on those winnings.

Illinois Lottery Tax Flat Rate Simplicity

Illinois gambling tax uses a simple flat rate of 4.95% on all winnings. Illinois lottery winnings face automatic withholding for prizes over $1,000. Chicago doesn’t add city tax on gambling winnings, unlike NYC.

The Illinois Lottery funds education and infrastructure through tax revenue. Sports betting winnings in Illinois face the same 4.95% flat tax rate.

Pennsylvania Lottery Tax Low Flat Rate

Pennsylvania lottery tax is a flat 3.07%, among the lowest flat rates nationally. Pennsylvania Lottery winnings over $5,000 trigger automatic withholding. Philadelphia residents pay an additional 3.79% city tax on gambling winnings.

Casino winnings from Pennsylvania’s many venues face the same 3.07% state rate. The Pennsylvania lottery tax rate makes it attractive compared to neighboring New York and Maryland.

Michigan Lottery Tax Moderate Flat Tax

Michigan lottery tax uses a flat 4.25% rate on all gambling winnings. Detroit’s 3 casinos generate winnings taxed at the same rate, with no additional city tax. Michigan lottery winnings over $5,000 face automatic state withholding.

Online gambling winnings in Michigan, including online lottery, face identical taxation. The rate is moderate compared to neighboring states.

New Jersey Lottery Tax High Progressive Rates

New Jersey gambling tax reaches 10.75% for high earners, among the nation’s highest. Atlantic City casino winnings face the same high rates as lottery prizes. New Jersey lottery winnings trigger automatic withholding above $5,000.

Online sports betting winnings, now legal in NJ, face identical tax treatment. The high rates make New Jersey less attractive than neighboring Pennsylvania for gamblers.

Ohio Lottery Tax Low Progressive Rates

Ohio moved to a flat 2.75% income tax in 2026, one of the lowest rates nationally. Ohio’s 4 casinos and 7 racinos generate winnings taxed identically to lottery. Sports betting winnings in Ohio face the same tax treatment.

The Ohio Lottery funds education through tax revenue. Automatic withholding applies to prizes exceeding $5,000.

North Carolina Lottery Tax Education Funding

North Carolina lottery tax is a flat 3.99% on all gambling winnings in 2026. The NC Education Lottery specifically funds state education programs. Cherokee casino winnings may have different tax treatment due to tribal sovereignty.

NC lottery winnings over $5,000 trigger automatic state withholding. The rate is low compared to neighboring states like South Carolina (6%) and Virginia (5.75%).

International Gambling Tax Comparison, 23 Countries

Tax-Free Countries (Recreational Players)

• United Kingdom – All gambling winnings tax-free
• Canada – Lottery and gambling winnings are “windfalls”
• Australia – Not considered assessable income
• Ireland – No tax on gambling winnings
• New Zealand – Tax-free even for professionals
• South Africa – Tax-free from licensed operators
• Singapore – Tax-free but casino entry levy for citizens/PRs
• Austria – Tax-free for recreational players

These jurisdictions share a common approach, placing the tax burden on operators rather than players. UK betting sites, along with platforms licensed in Australia, Canada, and Ireland, allow recreational bettors to keep 100% of their winnings. That’s a stark contrast to the US, where federal and state taxes apply to all gambling profits.

Countries with Gambling Taxes

Country	Tax Rate	Key Details	Official Source
Japan	~50% (Simplified)	After ¥500,000 deduction; actual rates 5-45%	NTA
India	31.2%	TDS on all net winnings including lottery	PIB
Netherlands	30.5%	On prizes over €449	Belastingdienst
USA	10-37% + State	Federal + 0-13.3% state	IRS
South Korea	22% / 33%	22% lottery (over ₩50M), 33% other gambling	NTS
Italy	20-25%	20% lottery/keno, 25% sports/casino/poker	ADM
Mexico	Up to 21%	Federal 1% + State up to 20%	SAT
Spain	20%	On state lottery amounts over €40,000	AEAT
Portugal	20%	Stamp duty on prizes over €5,000	AT
Philippines	20%	On winnings over ₱10,000	NTRC
Brazil	15%	On lottery prizes over R$2,112.00	Receita Federal
France	13.7% Social Levy	Casino winnings over €1,500 only; lottery tax-free	Legifrance
Belgium	11%	On all gambling winnings	SPF Finances
Germany	5.3% (on Stakes)	Tax on bets, not winnings	BMF
Switzerland	Up to 35%	Canton-based on lottery over CHF 1M	ESTV

Tax Planning Strategies for Gambling Winnings

For US Players

• Track All Losses: From the 2026 tax year, only 90% of gambling losses are deductible, still capped at your winnings (itemized deduction only)
• Keep Detailed Records: Date, type of gambling, location, amounts won/lost, W-2Gs
• Timing Matters: Consider spreading large wins across tax years if possible
• State Shopping: Consider playing in states with lower or no income tax
• Professional Status: May benefit high-volume players with significant expenses
• Estimated Taxes: Make quarterly payments to avoid penalties on large wins
• Annuity vs. Lump Sum: For lottery wins, annuity payments may result in lower overall tax
• Compare Platforms: Compare the best sportsbook bonuses to maximize your bankroll – winnings from bonus funds are taxable, so plan accordingly.

For International Players

• Residency Planning: Consider tax implications of where you’re resident
• Professional Status: Understand when gambling becomes taxable business
• Record Keeping: Maintain logs even in tax-free countries
• Cross-Border Wins: Check tax treaties for international gambling
• Currency Conversion: Track exchange rates for foreign winnings

Important Tax Disclaimers

Professional Consultation Recommended

This page provides estimates for educational purposes only. Tax laws are complex, change frequently, and vary by jurisdiction. Always consult with a qualified tax professional for advice specific to your situation. This content is not a substitute for professional tax advice.

Data Accuracy: While we strive to maintain accurate and up-to-date information, tax laws can change. All rates and thresholds are current as of January 2026. Users should verify current rates with official tax authorities.

Record Keeping: Regardless of your country’s tax laws, maintain detailed records of all gambling activities including the date and type of gambling activity, name and location of gambling establishment, names of people present, amount won or lost, and documentation such as receipts, tickets, W-2Gs, and bank statements.

Frequently Asked Questions

Are gambling winnings taxable?

In the USA, yes – all gambling winnings are taxable income, taxed at your federal bracket of 10-37% (with 24% withheld on large wins) plus state taxes of 0-13.3%. In the UK, Canada, Australia, and many other countries, recreational gambling winnings are tax-free.

How much tax do I pay on lottery winnings?

In the USA, lottery winnings over $5,000 have 24% federal tax withheld automatically, plus state taxes ranging from 0% to 13.3%. Large jackpots may be taxed up to 37% federal plus state taxes. Most other countries including UK, Canada, and Australia don’t tax lottery winnings.

Do I have to pay taxes on online gambling winnings?

Yes, in the USA all gambling winnings are taxable income, whether from online or land-based gambling. The IRS requires you to report all winnings, even if no W-2G is issued. Winnings from Bitcoin sportsbooks carry dual obligations – the IRS treats cryptocurrency as property, so converting crypto to place a wager can trigger capital gains tax on top of standard gambling income tax. In most other countries, online gambling winnings are tax-free for recreational players. Most online betting happens through mobile – explore our ranking of the best betting apps for secure wagering.

Are casino winnings taxable?

In the USA, all casino winnings are taxable. For payments made in 2026, casinos issue a W-2G for slot and bingo winnings of $2,000 or more and keno winnings of $2,000 or more after the wager, up from $1,200 and $1,500 in earlier years. Table game winnings are also taxable but usually do not trigger a W-2G. In the UK, Canada, and Australia, casino winnings are tax-free.

Which states have no gambling tax?

9 states have no state income tax on gambling winnings: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. However, federal taxes still apply to all US gambling winnings regardless of state.

Can I deduct gambling losses?

In the USA, you can deduct gambling losses only if you itemize deductions, and never more than your winnings. Starting with the 2026 tax year, the One Big Beautiful Bill Act limits the deduction to 90% of your losses, so a break-even year can still leave taxable income. Keep detailed records of all wins and losses. This only applies to US taxpayers.

What is the difference between withholding and actual tax owed?

Withholding is the amount taken upfront from your winnings (24% federal in USA). Your actual tax owed depends on your total income and tax bracket (10-37%). If withholding exceeds your actual tax, you’ll receive a refund. If your actual tax exceeds withholding, you’ll owe additional tax when filing.

Do I pay California state tax on gambling winnings?

Yes for most gambling. California taxes casino, sports betting and out-of-state lottery winnings at progressive rates from 1% to 12.3%, plus a 1% mental health tax on income over $1 million, for a maximum of 13.3%. California Lottery prizes, including Powerball and Mega Millions tickets bought in California, are exempt from state income tax.

Are sports betting winnings taxable?

In the USA, all sports betting winnings are taxable. A W-2G is issued when a payout is at least 300x your wager and meets the dollar threshold, $2,000 for payments made in 2026 ($600 before). In the UK, Canada, and Australia, sports betting winnings are tax-free for recreational bettors. For platform-specific information, see our FanDuel sportsbook review.

What makes someone a professional gambler for tax purposes?

Tax authorities consider factors like whether gambling is your primary income source, you gamble regularly and systematically, you maintain detailed records, you study and improve your methods, and you depend on winnings for livelihood. Professional status usually means paying income tax even in tax-free countries.

Is there a federal gambling tax calculator available?

Our guide above includes federal gambling tax information for all types of winnings, covering both the 24% withholding and estimated tax liability based on tax brackets.

Is $1,000 in gambling winnings taxable?

Yes. In the USA every dollar of gambling winnings is taxable income, whether or not you receive a W-2G. Report it on your federal tax return, and expect it to be taxed at your normal income tax rate.

Do I need to report gambling winnings under $600?

Yes. The $600 figure, now $2,000 for most W-2G forms paid in 2026, only decides whether the casino or sportsbook sends a form. You must report all gambling winnings on your tax return regardless of the amount.

Are you taxed twice on lottery winnings?

Not on the same tax. Federal and state income taxes are separate, so a lottery prize can owe both. If you win in another state, that state may tax the prize too, but your home state usually gives you a credit for tax paid there.

How much federal tax do you pay on $50,000 in gambling winnings?

It depends on your other income. If $50,000 were a single filer’s only income in 2026, the federal tax would be about $3,820 after the $16,100 standard deduction. Added to a salary, the same win is taxed at your marginal rate, often 22-24%.