Bet tax calculator
$5,200.00 of the year is taxable: $1,248.00 federal and $260.00 state tax on a year that actually won $3,000.00, leaving $1,492.00. Only the capped share of losses comes off, so $2,200.00 of the taxable income was never won.
Every winning bet’s profit is gambling income. From tax year 2026 an itemizer deducts 90% of their gambling losses, never more than their winnings; on the standard deduction losses come off nothing. Kelly applies your federal bracket and state rate to what is left. Type the year’s winnings and losses and your rates.
Tax year 2026
- Taxable income
- $5,200.00
- after the 90% loss cap
- Federal tax
- $1,248.00
- at 24%
- State tax
- $260.00
- at 5%
- Actually won
- $3,000.00
- winnings minus losses
- After tax
- $1,492.00
- what's left of the year once the tax is paid
- Taxed but not won
- $2,200.00
- taxable income beyond what you actually won
How it's worked out
| Losses deducted | the lower of 90% × $22,000.00 and $25,000.00 = $19,800.00 |
| Taxable | $25,000.00 − $19,800.00 = $5,200.00 |
| Federal tax | 24% × $5,200.00 = $1,248.00 |
| State tax | 5% × $5,200.00 = $260.00 |
| After tax | $25,000.00 − $22,000.00 − $1,508.00 = $1,492.00 |
Break-even after tax at 24%
The win rate each price needs once wins are taxed and only the capped share of losses comes off
| Price | Before tax | Itemizing | Standard deduction | Extra, itemizing |
|---|---|---|---|---|
| −200 | 66.67% | 67.35% | 72.46% | +0.69 pts |
| −150 | 60.00% | 60.74% | 66.37% | +0.74 pts |
| −130 | 56.52% | 57.28% | 63.11% | +0.76 pts |
| −120 | 54.55% | 55.32% | 61.22% | +0.77 pts |
| −115 | 53.49% | 54.26% | 60.21% | +0.77 pts |
| −110 | 52.38% | 53.16% | 59.14% | +0.77 pts |
| −105 | 51.22% | 52.00% | 58.01% | +0.78 pts |
| +100 | 50.00% | 50.78% | 56.82% | +0.78 pts |
| +110 | 47.62% | 48.40% | 54.47% | +0.78 pts |
| +120 | 45.45% | 46.23% | 52.30% | +0.77 pts |
| +130 | 43.48% | 44.24% | 50.30% | +0.77 pts |
| +150 | 40.00% | 40.75% | 46.73% | +0.75 pts |
| +200 | 33.33% | 34.03% | 39.68% | +0.69 pts |
Questions about the bet tax calculator
Are sports betting winnings taxable?
Yes. Every winning bet’s profit is gambling income, whether or not the book sends a W-2G.
Are betting losses deductible?
From 2026, up to 90% of your losses, only against gambling winnings and only if you itemize. On the standard deduction losses do not reduce the tax.
Why is tax due on more than the year won?
Because only 90% of losses come off from 2026. A year that wins exactly what it loses still leaves a tenth of the losses taxable; the card above shows that amount as taxed but not won.
When does a sportsbook send a W-2G?
When a single win pays $600 or more and at least 300 times the stake. Most spread and total bets never reach that, and the winnings are taxable either way.
Does my state tax gambling winnings?
Most states with an income tax do, and some don’t let losses come off. Choose Not sure and Kelly taxes all of the winnings at your state rate, the cautious figure.