Indiana Sports Betting Tax Calculator
Indiana taxes gambling winnings as ordinary income at 3.05% flat rate. Sports betting is legal (online and retail) in Indiana with operators including FanDuel, DraftKings, BetMGM. Indiana does NOT allow gambling loss deductions. County income taxes also apply. Sports betting legal since 2019.
Calculate Your Indiana Sports Betting Tax
2026 rules: 90% loss deduction cap applies (OBBBA)
Your salary, wages, and other non-gambling income
Losses can only be deducted if you itemize deductions
You cannot deduct gambling losses with the standard deduction. Switch to itemized to deduct losses.
Tax Breakdown
W-2G Form: Likely Required
Your total winnings of $10,000 exceed the $2,000 W-2G threshold for 2026. Individual wins that also meet the 300:1 odds requirement may trigger a W-2G form. Use our W-2G Checker for precise results.
Federal Withholding
$2,400 (24%) would be withheld at the time of payout. You may be due a refund of $1,200.
Indiana Gambling Tax Key Facts
- ✓State income tax: 3.05% flat rate
- ✓Sports betting: legal (online and retail)
- ✓Available sportsbooks: FanDuel, DraftKings, BetMGM, Caesars, BetRivers, Hard Rock
- ✓Does NOT allow gambling loss deductions at the state level
- ✓3.05% flat state rate
- ✓County taxes may apply (0.5-2.9% additional)
- ✓Does NOT allow gambling loss deductions at state level
How Sports Betting Taxes Work in Indiana
Indiana taxes gambling winnings as ordinary income at a flat 3.05% rate. Your gambling winnings are added to all other income and taxed accordingly.
Important: Indiana does NOT allow gambling loss deductions at the state level. Even if you itemize on your federal return and deduct losses there, Indiana will tax your full gambling winnings without offset. This makes Indiana less favorable for bettors who have significant losses.
Indiana Does NOT Allow Gambling Loss Deductions
Indiana does NOT allow gambling loss deductions at the state level. You pay state tax on full winnings regardless of losses.
Indiana Tax Example
A single filer in Indiana earning $60,000 with $10,000 in sports betting winnings and no losses
Licensed Sportsbooks in Indiana
You must be physically located within Indiana to place bets on these platforms.
How Indiana Compares to Neighboring States
Recent Indiana Gambling Tax Changes
Indiana does NOT allow gambling loss deductions. County income taxes also apply. Sports betting legal since 2019.
Indiana Sports Betting Tax FAQ
How much tax do I pay on sports betting winnings in Indiana?
Indiana taxes gambling winnings at 3.05% flat rate on top of federal tax (10-37%). Your total combined tax rate depends on your income level and filing status.
Is sports betting legal in Indiana?
Yes, sports betting is legal (online and retail) in Indiana. Licensed operators include FanDuel, DraftKings, BetMGM, Caesars, BetRivers, Hard Rock. You must be physically located within Indiana borders to place bets.
Can I deduct gambling losses in Indiana?
No, Indiana does NOT allow gambling loss deductions at the state level. Even if you deduct losses on your federal return, you will pay Indiana state tax on your full gambling winnings.
Indiana Tax Authority
For official tax guidance specific to Indiana, contact the state tax authority:
https://www.in.gov/dor/↗Calculate Your Indiana Sports Betting Taxes
Use our free calculator above to see exactly what you owe in Indiana.
Full Tax Calculator