Sports Betting
Tax Calculator
Calculate your federal and state taxes on sports betting winnings. Updated for the 2026 OBBBA 90% loss deduction cap, new $2,000 W-2G threshold, and phantom income rules. Free. All 50 states.
2026 Tax Law Change: OBBBA 90% Loss Deduction Cap Now in Effect
Starting January 1, 2026, you can only deduct 90% of gambling losses (down from 100%). Even break-even gamblers may owe taxes on "phantom income." Learn more
Everything You Need for Sports Betting Taxes
The most comprehensive sports betting tax calculator online. Updated for 2026 with features no other calculator has.
2026 OBBBA Rules
Updated for the One Big Beautiful Bill Act. Calculate "phantom income" from the new 90% loss deduction cap.
All 50 States + DC
State-specific tax rates, brackets, and special rules. Know exactly what you owe in your state.
Parlay Tax Calculator
See your after-tax parlay payout instantly. The only calculator that shows what the IRS takes from your parlay.
W-2G Checker
Will your win trigger a W-2G? Check the new $2,000 threshold and 300:1 rule for 2026.
Daily Big Wins
See today's biggest sports betting wins with automatic tax breakdowns. Updated daily.
2025 vs 2026 Comparison
Toggle between pre-OBBBA and post-OBBBA rules to see exactly how much more you owe in 2026.
Sports Betting Tax by State
Click your state for a detailed tax breakdown and calculator
2026 Tax Guides
In-depth guides to navigate the new gambling tax rules
OBBBA Gambling Loss Deduction: The 90% Cap Explained
How the One Big Beautiful Bill Act creates "phantom income" for gamblers and what you can do about it.
Sports Betting Taxes 101: Everything You Need to Know
Federal rates, state taxes, W-2G forms, loss deductions, and how to report DraftKings and FanDuel winnings.
How Much Will the IRS Take From Your Winnings?
Don't get surprised at tax time. Calculate your exact federal and state tax liability in seconds. Free, no signup required.
Calculate My Taxes NowFrequently Asked Questions
How much tax do you pay on sports betting winnings in 2026?
Sports betting winnings are taxed as ordinary income at your federal marginal rate (10-37%) plus your state's income tax rate (0-10.9%). The IRS withholds 24% on winnings over $5,000. Under the 2026 OBBBA rules, you can only deduct 90% of losses, creating taxable "phantom income" even if you break even.
What is phantom income from gambling?
Phantom income is taxable income created by the 2026 OBBBA 90% loss deduction cap. If you win $100,000 and lose $100,000, you can only deduct $90,000 of losses — leaving $10,000 in "phantom" taxable income even though you broke even.
What is the W-2G threshold for sports betting in 2026?
For 2026, a W-2G is required when sports betting winnings are at least $2,000 AND at least 300 times the wager amount (both conditions must be met). This increased from $600 under prior rules. Starting 2027, the threshold adjusts annually for inflation.
Do I have to report small sports betting wins?
Yes. All gambling winnings are taxable regardless of the amount. Even a $5 parlay that pays $50 is taxable income. While the sportsbook may not issue a W-2G for small amounts, you are legally required to report all winnings on your tax return as "other income" on Schedule 1.
How do I report DraftKings or FanDuel winnings on my taxes?
Report total gambling winnings on Schedule 1 (Form 1040), Line 8b as "other income." Both DraftKings and FanDuel provide year-end statements in your account settings. If you itemize deductions, you can deduct losses on Schedule A (up to 90% under 2026 OBBBA rules).
What is the OBBBA 90% loss deduction cap?
The One Big Beautiful Bill Act (signed July 4, 2025) caps gambling loss deductions at 90% starting January 1, 2026. Previously you could deduct 100% of losses up to your winnings. Now 10% of your losses are non-deductible, creating taxable "phantom income" even if you break even.
Which states have no tax on gambling winnings?
Nine states have no state income tax on gambling winnings: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. In these states, you only owe federal tax on your winnings. Use our state comparison tool to see the difference.