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Sports Betting Tax by State

Every state taxes gambling winnings differently. Nine states have no income tax at all. Some states don't allow loss deductions. Use our state-specific calculators to see exactly what you owe. All data updated for 2026 OBBBA rules.

9
No State Tax States
31
Online Betting States
9
Retail Only States
4
No Loss Deduction

All States + DC

StateTax RateSports BettingOnlineLoss Deduction
AlabamaGraduatedNo-YesCalculator
Alaska0% (no tax)No-N/ACalculator
Arizona2.50%LegalYesYesCalculator
ArkansasGraduatedLegalYesYesCalculator
CaliforniaGraduatedNo-YesCalculator
Colorado4.40%LegalYesYesCalculator
ConnecticutGraduatedLegalYesYesCalculator
DelawareGraduatedLegalRetail onlyYesCalculator
District of ColumbiaGraduatedLegalYesYesCalculator
Florida0% (no tax)LegalYesN/ACalculator
Georgia5.49%No-YesCalculator
HawaiiGraduatedNo-YesCalculator
Idaho5.80%No-YesCalculator
Illinois4.95%LegalYesYesCalculator
Indiana3.05%LegalYesNoCalculator
Iowa3.80%LegalYesYesCalculator
KansasGraduatedLegalYesYesCalculator
Kentucky4.00%LegalYesYesCalculator
LouisianaGraduatedLegalYesYesCalculator
MaineGraduatedLegalYesYesCalculator
MarylandGraduatedLegalYesYesCalculator
Massachusetts5.00%LegalYesNoCalculator
Michigan4.25%LegalYesYesCalculator
MinnesotaGraduatedNo-YesCalculator
Mississippi4.70%LegalRetail onlyYesCalculator
MissouriGraduatedLegalYesYesCalculator
MontanaGraduatedLegalRetail onlyYesCalculator
NebraskaGraduatedLegalRetail onlyYesCalculator
Nevada0% (no tax)LegalYesN/ACalculator
New Hampshire0% (no tax)LegalYesN/ACalculator
New JerseyGraduatedLegalYesYesCalculator
New MexicoGraduatedLegalRetail onlyYesCalculator
New YorkGraduatedLegalYesYesCalculator
North Carolina4.50%LegalYesNoCalculator
North DakotaGraduatedLegalRetail onlyYesCalculator
OhioGraduatedLegalYesYesCalculator
OklahomaGraduatedNo-YesCalculator
OregonGraduatedLegalYesYesCalculator
Pennsylvania3.07%LegalYesYesCalculator
Rhode IslandGraduatedLegalYesYesCalculator
South CarolinaGraduatedNo-YesCalculator
South Dakota0% (no tax)LegalRetail onlyN/ACalculator
Tennessee0% (no tax)LegalYesN/ACalculator
Texas0% (no tax)No-N/ACalculator
Utah4.65%No-YesCalculator
VermontGraduatedLegalYesYesCalculator
VirginiaGraduatedLegalYesYesCalculator
Washington0% (no tax)LegalRetail onlyN/ACalculator
West VirginiaGraduatedLegalYesYesCalculator
WisconsinGraduatedLegalRetail onlyNoCalculator
Wyoming0% (no tax)LegalYesN/ACalculator

States With No Gambling Tax (No Income Tax)

These nine states have no state income tax, meaning gambling winnings are only subject to federal taxes. You still owe federal tax (10-37% marginal rate), and the IRS still withholds 24% on winnings over $5,000, but there is no additional state tax.

AK
Alaska
0% State Tax
FL
Florida
0% State Tax
NV
Nevada
0% State Tax
NH
New Hampshire
0% State Tax
SD
South Dakota
0% State Tax
TN
Tennessee
0% State Tax
TX
Texas
0% State Tax
WA
Washington
0% State Tax
WY
Wyoming
0% State Tax

States That Don't Allow Gambling Loss Deductions

These states tax your full gambling winnings at the state level without allowing you to deduct losses, even if you itemize on your federal return. This can significantly increase your tax burden compared to states that follow federal loss deduction rules.

Indiana
No Loss Deduction
Massachusetts
No Loss Deduction
North Carolina
No Loss Deduction
Wisconsin
No Loss Deduction

States Where Sports Betting Is Not Yet Legal

These states have not yet legalized sports betting. Residents who gamble in other states, at tribal casinos, or through offshore sites are still required to report and pay taxes on their winnings.

Alabama
Not Legal
Alaska
Not Legal
California
Not Legal
Georgia
Not Legal
Hawaii
Not Legal
Idaho
Not Legal
Minnesota
Not Legal
Oklahoma
Not Legal
South Carolina
Not Legal
Texas
Not Legal
Utah
Not Legal

How State Taxes on Sports Betting Work in 2026

Sports betting winnings are taxed at both the federal and state level. Federal tax applies uniformly across all states at your marginal rate (10-37%). State tax varies dramatically — from 0% in states like Florida and Nevada, to over 10% in New York and California.

The 2026 OBBBA (One Big Beautiful Bill Act) added a new wrinkle: gambling loss deductions are now capped at 90% of losses at the federal level. Some states follow this federal cap, while others have their own rules. Indiana, Massachusetts, North Carolina, and Wisconsin don't allow gambling loss deductions at all at the state level.

Use our state-specific calculators above to see exactly what you owe in your state, including the 2026 OBBBA phantom income impact.