Sports Betting Tax Calculator

Estimate your federal and state taxes on gambling winnings

Updated for 2026 Tax Year

New for 2026: 90% Loss Deduction Cap

Starting in 2026, you can only deduct 90% of your gambling losses (not 100%). This calculator includes this new rule.

Your Information

$
Your regular W-2/1099 income
$
All winnings from all platforms
$
Keep records of all losses
$
Check your W-2G forms

You can only deduct losses if you itemize instead of taking the standard deduction

Estimated Tax Impact

Taxable Gambling Income $5,000
Deductible Losses (90% cap) $0
Net Taxable Gambling Income $5,000
Your Marginal Tax Bracket 22%
Federal Tax on Winnings $1,100
State Tax on Winnings $250
Taxes Already Withheld -$0
Estimated Tax Due $1,350

Important Disclaimer

This is an estimate only. Consult a tax professional for advice specific to your situation. Tax laws vary by state and individual circumstances.

How Sports Betting Taxes Work

All gambling winnings are taxable income in the United States. This includes winnings from DraftKings, FanDuel, BetMGM, Caesars, and any other sportsbook—whether online or in-person.

Key Rules for 2026

  • All winnings are taxable — Even if you didn't receive a W-2G or 1099
  • Report on Schedule 1 — Gambling income goes on Form 1040, Schedule 1, Line 8
  • Losses are deductible — But only if you itemize deductions
  • 90% cap on losses — New for 2026: You can only deduct 90% of losses
  • Can't exceed winnings — Loss deductions cannot exceed your total winnings
  • Keep records — Document all bets, wins, and losses

When You'll Receive Tax Forms

Form When It's Issued
W-2G Winnings ≥ $600 AND ≥ 300x the wager (sports betting)
W-2G Starting 2026: Winnings ≥ $2,000 AND ≥ 300x wager
1099-MISC Some platforms issue this instead of W-2G
1099-K Third-party payment processors (rare for betting)

Federal Tax Brackets (2026)

Tax Rate Single Filers Married Filing Jointly
10% $0 - $11,925 $0 - $23,850
12% $11,926 - $48,475 $23,851 - $96,950
22% $48,476 - $103,350 $96,951 - $206,700
24% $103,351 - $197,300 $206,701 - $394,600
32% $197,301 - $250,525 $394,601 - $501,050
35% $250,526 - $626,350 $501,051 - $751,600
37% Over $626,350 Over $751,600

Common Questions

Do I have to report winnings if I lost money overall?

Yes. You must report all winnings as income, then separately deduct losses (if you itemize). You can't simply report your "net" result.

What if I didn't receive a W-2G or 1099?

You're still required to report all gambling winnings, even without a tax form. The IRS expects you to self-report.

Can I deduct losses from one app against winnings from another?

Yes. All gambling activity is treated together. Losses from FanDuel can offset winnings from DraftKings (if you itemize).

What records should I keep?

Keep a log of all gambling activity including:

  • Date and type of each bet
  • Name of sportsbook/casino
  • Amount wagered and won/lost
  • Any documentation (receipts, account statements)

What's the standard deduction for 2026?

Single: $15,750 | Married Filing Jointly: $31,500 | Head of Household: $23,625

If your itemized deductions (including gambling losses) don't exceed these amounts, you're better off taking the standard deduction—meaning you can't deduct gambling losses.