How to use the sports betting tax calculator
- Enter your total sportsbook winnings for the year. Count the profit on winning bets, not the stake that comes back to you.
- Enter the total of your losing bets.
- Pick your federal tax bracket and set your state income tax rate.
- Choose whether you itemise or take the standard deduction.
You see the taxable betting income, the federal and state tax on it, and what is left after tax and the money you lost on losing bets.
What the calculator assumes
- All winnings are added to your other income and taxed at your top federal rate.
- If you itemise, you deduct the smaller of 90% of your losing bets and your winnings. If you do not, you deduct nothing.
- The same state rate applies to the taxable amount.
A note on "winnings": a $100 bet that returns $250 is $150 of winnings, because your own stake is not income. A losing bet counts as a loss of its full stake.
Worked examples
A typical bettor. You win $6,000 in profit and lose $5,000 on losing bets. You itemise, you are in the 24% bracket and your state taxes at 5%.
- Deductible losses: 90% of $5,000 = $4,500, so $1,500 is taxable.
- Federal tax: $360. State tax: $75.
- You are left with $6,000 − $5,000 − $360 − $75 = $565.
The same bettor with the standard deduction. All $6,000 is taxable, so federal tax is $1,440 and state tax $300. You are left with −$740: you lost money overall and still paid tax.
A big parlay. A $100 parlay pays $50,000. This is more than $2,000 and more than 300 times the stake, so the sportsbook files a W-2G. It also has to withhold 24% of the profit, about $11,976, which counts as a prepayment against your final tax bill.
Sports betting and your tax return
- Winnings are reported as gambling income, whether or not you receive a W-2G.
- Losses are claimed as an itemised deduction, so keep a record of every bet, not just the winners.
- Promos matter. Bonus winnings count as income, so track the promotions you use. Our guide to free bets and odds boosts explains how they work.
- Cashing out early. A cash-out settles the bet, so the profit or loss is booked on the day it settles. Read about cash-out.
Reduce the surprises
- Keep a spreadsheet with date, sportsbook, bet, stake and result, and update it weekly.
- Download year-end statements from each sportsbook and check them against your log.
- If you had a big year, ask a tax professional about estimated payments, as sportsbooks only withhold on certain large wins.
- Treat sports betting as entertainment. Taxes make it harder to come out ahead, so see bankroll management.
Other tax calculators
- Gambling winnings tax calculator: the general rules for every kind of gambling.
- Casino winnings tax calculator: slots, jackpots and table games.
- Prediction market tax calculator: event contracts on Kalshi and Polymarket.
- Sweepstakes prize tax calculator: redeemed prizes.
To see what a bet costs before you place it, use the bet calculator and the parlay calculator.