Most people who use online sportsbooks aren’t professional gamblers. (Also remember that sports betting is not legal in every state - or it might only be available in person!) Once you add your gambling winnings to your other income, you can estimate how much you’ll owe (or get as a refund!) using Keeper’s income tax calculator.ĭepending on the state you live in, you might also have to pay state income tax. You can figure out your income tax rate on the IRS website.) Income taxĪll gambling winnings are subject to federal income tax, and will be taxed at the same rate as your other income. Chances are, you’ll only need to deal with one - income tax - so we’ll start there. There are a few taxes you might need to pay on your sports betting income. What taxes do you need to pay on your sports betting income? So if your year wasn’t exactly lucky (that is, you lost money gambling in 2023), you won’t have to add insult to injury. One bright spot: You do have to win money in order to owe taxes on your gambling income. This applies to all types of gambling, whether you placed your bet in person, on an app, or on your computer. Just like any other form of income, gambling winnings are taxable. Do you need to pay taxes on your sports betting income?
