Lottery and Gambling Winnings Tax Calculator

Gamble Tax Calculator

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Tax paid on gambling winnings

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In the United States, all gambling winnings are taxable income, with federal rates of 24-37% 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: 24-37% 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 24-37% + 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: California (1-13.3% progressive), New York (10.9%), Hawaii (11%)
• No Tax States: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
• 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	Additional 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	8.75%	Local taxes may add 3.2% more; casino winnings fully taxable
Vermont	8.75%	Progressive rates; lottery winnings taxed as income

Moderate Tax States (3-8%)

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	3.99%	Progressive rates; 4 casinos and 7 racinos taxed identically
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	3.15% Flat	Hoosier Lottery and riverboat casino profits taxable
Massachusetts	5% Flat	State lottery popular; casino winnings taxed same rate
Georgia	5.75%	Progressive rates; HOPE scholarship funded by lottery
North Carolina	5.25% Flat	Education Lottery funds schools; 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	7%	Education Lottery funds schools; progressive rates apply
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	4.9%	Scholarship lottery funds education; casino winnings taxable
Idaho	5.8%	Tribal casino winnings may differ; progressive rates
Iowa	6%	Riverboat casino winnings taxed; progressive rates
Kansas	5.7%	State-owned casinos mean tax applies; progressive rates
Kentucky	4.5% Flat	Horse racing winnings also taxed; simple flat rate
Louisiana	4.25%	New Orleans casino winnings taxed; riverboat gambling taxable
Mississippi	5%	Gulf Coast casino winnings taxed; newest state lottery (2019)
Missouri	5.4%	Riverboat casino winnings taxed; progressive rates
Montana	6.75%	Limited gambling options; progressive tax structure
Nebraska	6.84%	Progressive rates; casino gambling newly legalized
New Mexico	5.9%	Tribal casino winnings may differ; progressive rates
North Dakota	2.9%	Charitable gaming also taxed; low rates vs neighbors
Oklahoma	4.75%	Tribal casino winnings complex; progressive rates
Utah	4.85% Flat	No legal gambling; out-of-state winnings taxed at 4.85%
West Virginia	6.5%	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 taxes lottery winnings as ordinary income using progressive rates from 1% to 13.3%. The California lottery tax must account for your total income including winnings. For example, winning the California Lottery jackpot of $10 million would result in approximately $1.33 million in state taxes.

California doesn’t withhold taxes from lottery prizes, but quarterly estimated payments may be required. The state’s mental health tax adds 1% for income over $1 million, making California gambling tax 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 over $1 million compared to California.

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 lottery tax uses progressive rates topping at 3.99%, relatively low 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 5.25% on all gambling winnings. 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 moderate compared to neighboring states like South Carolina (7%) 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	24-37% + 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: Gambling losses are deductible up to winnings amount (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, with federal tax of 24-37% 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. Casinos must issue W-2G forms for slot winnings of $1,200+, keno winnings of $1,500+, and poker tournament net winnings over $5,000. Table game winnings are also taxable but usually don’t trigger W-2G reporting. 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 up to the amount of your winnings if you itemize deductions. You must keep detailed records of all wins and losses. Professional gamblers can deduct expenses as business deductions. 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, California taxes gambling winnings at progressive rates from 1% to 12.3%, plus an additional 1% mental health tax on income over $1 million, for a maximum rate of 13.3%. The rate depends on your total income including the winnings.

Are sports betting winnings taxable?

In the USA, all sports betting winnings are taxable. A W-2G is issued for wins of $600+ that are also 300x your wager. 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.