Hitting a jackpot or winning a massive parlay is a dream come true. However, for players in many jurisdictions, that dream comes with a silent partner: the Taxman. Whether it is the IRS in the United States or the Income Tax Department in India, the difference between your “Gross Winnings” and your “Net Payout” can be shocking.
Our Unified Gambling Tax Calculator removes the guesswork. It automatically adjusts to the tax laws of your region—whether you are in New York, London, or Mumbai—to show you exactly how much money will actually hit your bank account.
Betting Tax Calculator
US Federal + StateHow to Use the Winnings Tax Calculator
Tax laws are complex, but this tool makes them simple. Follow these steps to estimate your liability:
- Select Your Region: Choose your jurisdiction from the dropdown menu.
- Smart Presets: Selecting “USA – New York” will automatically load the Federal (24%) and estimated State/City tax rates. Selecting “India” will switch to the 30% TDS logic.
- Enter Gross Winnings: Input the total amount you won (e.g., the lottery jackpot size or the total payout from a betting slip).
- Enter Initial Stake (Optional): For jurisdictions that tax “Net Profit” (like India or Kenya) rather than the gross payout, entering your stake ensures the calculation is accurate.
- Review the Breakdown: The calculator will show you the Federal/National tax, any applicable State/Local taxes, and your final Net Payout.
Related Tools: Trying to calculate your potential payouts before taxes? Use our Parlay Calculator for sports bets. If you are playing slots, check your actual performance with the Slot RTP Estimator.
Global Gambling Tax Examples
Gambling taxes vary wildly depending on where you live. Here is how the calculator handles different scenarios:
Scenario 1: The USA Lottery Winner (California vs. New York)
You win $1,000,000 in the lottery.
- In California: You pay 24% Federal Tax ($240,000). California does not tax lottery winnings.
Net Payout: $760,000. - In New York: You pay 24% Federal, plus 8.82% State, plus ~3.8% City tax.
Net Payout: ~$633,000.
Scenario 2: Online Betting in India (TDS Rule)
You withdraw ₹100,000 from a betting app (Net Winnings).
- The Rule: India applies a flat 30% TDS (Tax Deducted at Source) on net winnings at the time of withdrawal or year-end.
- Calculation: You pay ₹30,000 in tax.
- Net Payout: ₹70,000.
Scenario 3: The UK Punter
You win £50,000 on a horse race.
- The Rule: Gambling winnings are completely tax-free in the United Kingdom. The tax is placed on the operator, not the player.
- Net Payout: £50,000.
Frequently Asked Questions (FAQ)
Do I have to pay taxes on gambling losses?
Generally, no. In the USA, you can deduct gambling losses from your winnings if you itemize your deductions (Schedule A), but you cannot deduct more than you won. In the UK and Canada, since winnings are not taxed, losses are not deductible.
What is the W-2G form (USA)?
A W-2G form is sent to you and the IRS if you win a certain amount (usually $1,200+ for slots, or $600+ if the payout is at least 300x the wager). It reports your winnings so the government ensures you pay the 24% federal withholding tax.
Is crypto gambling taxed?
Yes. In most jurisdictions (like the USA and UK), crypto assets are treated as property. Winning crypto in a casino is a taxable event, and converting that crypto to fiat (USD/GBP) may trigger a second “Capital Gains” tax event.
How does the 30% Tax in India work?
Under Section 115BBJ, a flat 30% tax is applied to your “Net Winnings” (Total Withdrawals – Total Deposits) for the financial year. The operator is required to deduct this TDS before allowing you to withdraw.