Guide to US Gambling Taxes 2026: Understand Tax Rates to Maximize Your Profits

If you plan on gambling in Connecticut, expect to pay a 6.99% state tax on all gambling winnings over $600.

Delaware has a revenue pact with Rhode Island that sees a tax rate of 51% across both states.

Alongside the Federal tax of 24%, Maine State will add a 5% tax to all winnings over $5000.

Maryland residents will be stung with a state tax of 8.75% on anything over $600. Visitors, on the other hand, will see a 7% state tax added to their winnings.

You will be fortunate enough to win $600 tax-free in Massachusetts; however, any cent over that will be subject to a 5% state tax.

For those of you planning to wager online, expect a 51% state tax to be applied. Those of you wagering in person can expect a 50% tax added to all winnings.

The Garden State likes to keep things simple by adding an additional 3% state tax to all types of winnings.

The busiest online betting hub across the US is subject to a 13.5% state tax, while those opting to make use of its retail sites can expect to be taxed 8.5%.

Much like the Garden State, Pennsylvania looks to keep things simple by adding a 3.07% tax to any winnings made across the board.

Rhode Island has a revenue pact with Delaware that sees a tax rate of 51% across both states.

Over in the Green Mountain State, you can enjoy winnings of up to $600 before a 6% state tax is applied.

Before you sign yourself up for one of the best online betting sites Illinois has to offer, it is worth noting that Illinois classes all gambling winnings as personal income. In other words, depending on your income, you’ll pay between 10% and 37%.

Indiana is a sweet spot for bettors that can generate some winnings – a generous 3.23% state tax is applied across the board.

Things are still kept nice and simple when heading to Iowa, where you’ll find a state tax of 5% added to all sorts of gambling winnings.

You’ll have the chance to keep $5000 away from any form of Kansas state tax; however, expect 5% of all winnings to be taken once you surpass that threshold.

The Wolverine State will take a 4.25% cut of all your gambling winnings, regardless of the value.

Minnesota leaves it all up to the IRS, allowing bettors to wager across the state without any state tax added to their winnings.

You’ll be given a $601 head start in Missouri before a state tax of 4% is added to any dollar above this value.

Any big winnings here will be subject to a 24% federal tax and 20% state tax.

When we consider gambling, North Dakota isn’t exactly thriving; however, expect to pay 1% on any charity casino wins.

Irrespective of how you accumulate your wins over in Ohio, you will need to factor in a 4% state tax.

No additional taxes are added to lottery winnings in South Dakota.

Straight from the off, you’ll be subjected to a 7.65% state tax in Wisconsin. This will only increase as your winnings do!

Those opting to wager in Alabama can expect to be taxed 2% on $500 worth of winnings. As winnings increase, taxes increase, too, with a maximum tax of 5% applied.

Bettors from Arkansas will take home all their winnings, up to $1200. Anything beyond this is subject to a standard 3% rate.

You’ll have a $5000 cap before the 24% tax is added in Florida, unless your winnings have come from sports betting. If so, expect state taxes of 13.75% to be added.

Regardless of your home state, Georgia will request 6% of any winnings obtained on their soil.

Things are kept simple in Kentucky, with a 6% tax applied to all winnings, regardless of betting style.

Retail bettors in Louisiana will need to pay 10% taxes on any winnings, while those opting to wager online can expect to pay a slightly higher 15%.

Should you hit the specific thresholds, a 24% federal tax and 3% state tax will be taken by your chosen operator.

State tax is kept nice and simple in North Carolina. You’ll pay 4% on any winnings, regardless of size.

As soon as you hit that $1000 threshold, you’ll be stung with a 3% state tax on all winnings.

Any winnings in South Carolina over $3100 are subject to a sliding state tax rate, up to the value of 7%.

You can expect a 3% state tax to be added to all winnings that trigger a 24% federal tax.

Gamblers need only worry about the IRS when wagering in Tennessee – nothing will be added in the form of state tax to any of those TN gambling wins.

Any winnings of less than $3000 will be hit with a 2% state tax; however, should your winnings go beyond $3k, you could receive a state tax of up to 5.75%.

If you are in West Virginia, you will soon see a 5.5% state tax added to any form of gambling winnings.

Alaskan gamblers will be pleased to hear that they only need to worry about the IRS – no additional state taxes are added to any winnings.

AZ gambling winnings will be subject to a state tax that begins at 2.59%. Should your winnings exceed $26,500, expect this tax to be increased to an upper limit of 4.5%. 

All gambling wins are considered as taxable income across California. In turn, state tax ranges from 1% to 13.3% depending on total income.

Should you be fortunate enough to generate some winnings in Colorado, expect the 4.63% flat rate to be applied. This will increase for sportsbook users who will be required to pay 10%.

Professional gamblers will be taxed 4% on out-of-state winnings; however, gambling is illegal across the state itself.

All winnings in Idaho are subject to the federal tax of 24% only – result!

Bingo and Keno wins will be subject to an impressive 1% state tax while all slot victories will incur a 15% state tax.

Nevada appears to look after its casual bettors, allowing a $5k threshold before any tax is added. After that, expect a state tax of 25% on all winnings.

Things are kept nice and straightforward in New Mexico, where you’ll have to factor in a 9% tax on all of your sportsbook and casino winnings.

All winnings under $600 will be deemed tax-free. Winnings between $600 and $1500 will be subject to an insignificant tax while anything beyond $1.5k will have an 8% state tax added to it.

All forms of gambling are prohibited in Utah. So, you’ll see no additional state taxes here!

Nothing. Nil. Zero. Zilch. Except for the 24% that comes as standard from the IRS.

Last on our list is Wyoming. Here, you can expect to pay a 10% state tax on all winnings.