If your sports betting winnings exceed the threshold, then the IRS will be notified and a W-2G form will be sent out. How do I have to tax my sports betting wins in New York City? Your winnings won’t be subjected to the maximum 8.82% tax rate until they exceed $1,077,550. Thereafter, the tax rate increases steadily. Winnings up to $8,500 is subjected to the minimum 4%, which should cover most NY sports bettors, save for the high rollers. The federal tax rate on winnings is a flat 24%, while the New York State tax ranges from 4% - 8.82% depending on how much you’ve won. Once you pass that threshold, you will have to pay both federal and state tax on your winnings from sports betting. In New York, you are allowed up to $600 in sports betting winnings tax-free. As well as sports wagering the same rules apply for other forms of gambling, including poker tournaments, casino slots machines, bingo, lottery and daily fantasy sports.įor the purposes of this article we’ll be focussing solely on sports wagering. These will need to be included in your tax return. If you’re total winnings from sports wagers in a year pass a certain threshold, then the IRS will be informed and you will have to pay tax on your winnings. Do I have to pay tax on sports betting winnings in NY? No Deposit Bonus Codes for Existing Players.
