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Minnesota Sports Betting Tax Calculator

Minnesota taxes gambling winnings as ordinary income at graduated brackets (varies by income). Sports betting is not yet legalized in Minnesota. Residents who gamble in other states or at casinos still owe Minnesota income tax on winnings. Sports betting not yet legalized. Multiple legislative efforts ongoing.

Graduated
State Tax Rate
No
Sports Betting
Yes
Loss Deduction
0
Sportsbooks

Calculate Your Minnesota 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.

Your Take-Home from $10,000 in Winnings
$8,120
Total Tax: $1,880|Effective Rate: 18.8%

Tax Breakdown

Total Income (salary + winnings)$60,000
Standard Deduction-$16,100
Taxable Income$43,900
Federal Tax (12.0% marginal)$1,200
Minnesota State Tax$680
Total Tax on Gambling Winnings$1,880
Net Take-Home$8,120

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.

Minnesota Gambling Tax Key Facts

  • ✓State income tax: graduated brackets (varies by income)
  • ✓Sports betting: not yet legalized
  • ✓Gambling loss deductions ARE allowed (must itemize)
  • ✓Top rate of 9.85%

How Sports Betting Taxes Work in Minnesota

Minnesota taxes gambling winnings as ordinary income through graduated tax brackets. Your gambling winnings are added to all other income and taxed accordingly.

Minnesota allows gambling loss deductions following federal rules. Under the 2026 OBBBA, losses are deductible at 90% (capped at the amount of winnings) when itemizing deductions.

Minnesota Allows Gambling Loss Deductions

Minnesota follows federal rules for gambling loss deductions. The 2026 OBBBA 90% cap applies when itemizing.

Minnesota Tax Example

A single filer in Minnesota earning $60,000 with $10,000 in sports betting winnings and no losses

Salary Income$60,000
Gambling Winnings$10,000
Federal Tax on Winnings$2,200 (at the 22% marginal bracket)
Minnesota State Tax$500 (graduated brackets (varies by income))
Total Tax$2,700 combined federal + state
Net Take-Home$7,300 from $10,000 in winnings

How Minnesota Compares to Neighboring States

IowaCompare Minnesota gambling tax rates with Iowa
WisconsinCompare Minnesota gambling tax rates with Wisconsin
North DakotaCompare Minnesota gambling tax rates with North Dakota

Recent Minnesota Gambling Tax Changes

Sports betting not yet legalized. Multiple legislative efforts ongoing.

Minnesota Sports Betting Tax FAQ

How much tax do I pay on sports betting winnings in Minnesota?

Minnesota taxes gambling winnings at graduated brackets (varies by income) 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 Minnesota?

Sports betting is not currently legal in Minnesota. However, residents who gamble in other states or at legal casinos still must report and pay taxes on their winnings.

Can I deduct gambling losses in Minnesota?

Yes, Minnesota allows gambling loss deductions following federal rules. You must itemize deductions, and losses are limited to the amount of your winnings. The 2026 OBBBA 90% cap applies.

Minnesota Tax Authority

For official tax guidance specific to Minnesota, contact the state tax authority:

https://www.revenue.state.mn.us/↗

Calculate Your Minnesota Sports Betting Taxes

Use our free calculator above to see exactly what you owe in Minnesota.

Full Tax Calculator