New York Gambling Taxes

New Yorkers need to pay tax on gambling winnings. The Empire State levies a graduated income tax, and you will also be required to pay federal income tax on any gambling profits earned each year.

This guide explains how to pay taxes on your gambling winnings in New York. We will also explain how to deduct any losses incurred from your gambling winnings, which could eliminate or reduce your tax liabilities.

How to pay federal taxes on gambling in New York

Gambling winnings are simply another form of income in the eyes of the IRS. They must be added to all other money earned throughout the year, such as your salary, bonuses, dividends, capital gains, and so on.

Your total income and your marital status will then dictate the tax rate you pay. These are the brackets for the 2024 tax year:

Rate	Single	Married Filing Jointly	Married Filing Separately	Head of Household
10%	$0 – $11,600	$0 – $23,200	$0 – $11,600	$0 – $16,550
12%	$11,600 – $47,150	$23,200 – $94,300	$11,600 – $47,150	$16,550 – $63,100
22%	$47,150 – $100,525	$94,300 – $201,050	$47,150 – $100,525	$63,100 – $100,500
24%	$100,525 – $191,950	$201,050 – $383,900	$100,525 – $191,950	$100,500 – $191,950
32%	$191,950 – $243,725	$383,900 – $487,450	$191,950 – $243,725	$191,950 – $243,700
35%	$243,725 – $609,350	$487,450 – $731,200	$231,251 – $365,600	$243,700 – $609,350
37%	$609,350+	$731,200+	$365,600+	$609,350+

The payer, such as a casino or online sportsbook, should issue you with a Form W-2G if you win a substantial amount of money. A copy of the form will also be sent to the IRS. Here are the current thresholds for receiving a Form W-2G:

$1,200 or more (not reduced by your bet amount) from slot machines or bingo
$1,500 or more (reduced by your wager amount) from keno
$5,000 or more (reduced by the wager or buy-in) from a poker tournament
$5,000 or more from lotteries, sweepstakes, or betting pools
$600 or more from other types of gambling if the amount is at least 300 times the wager

When you receive this form, your winnings will be subject to a 24% withholding tax. That means the casino, sportsbook, racebook, or poker room will hold back 24% of your winnings and pay you the remaining 76%.

However, it is important to note that the 24% is simply an estimate of your potential tax liability. You may get some of it back after filing your annual tax return, or you may end up owing the IRS more money.

Steps to take when you file

Follow these steps to declare your gambling winnings on your IRS return:

Look out for line 21, Form 1040. You will see an “Other Income” section on Schedule 1.
Provide details of your gambling winnings in this section. You should also highlight any withholding tax that you have paid. As discussed earlier, you may get some of that money or all of that money back, or you may owe more.
If you received any Form W-2G documents that year, attach them to the return. That will make it easy for the IRS to see any withholding tax that you have already paid.
You can also deduct any losses from your winnings, which can lower your tax liability or eliminate it. To do so, you will need to provide an itemized record of your wins and losses throughout the year on line 27, Schedule A (Form 1040).
Attach details of any statements, tickets, or receipts that back up your claims.

You can learn more about deducting gambling losses in the FAQ section below.

How to pay state taxes on NY gambling winnings

New York takes a similar approach to the federal government when it comes to taxing your gambling winnings. They are treated as another form of income and added to your total earnings for the year, and you then pay a graduated tax according to your bracket.

If you are single or married but filing separately, these are the New York income tax brackets for 2024/25:

$0 to $8,500: 4%
$8,501 to $11,700: 4.5%
$11,701 to $13,900: 5.25%
$13,901 to $21,400: 5.9%
$21,401 to $80,650: 5.97%
$80,651 to $215,400: 6.33%
$215,401 to $1,077,550: 6.85%
$1,077,551 to $5,000,000: 9.65%
$5,000,001 to $25,000,000: 10.3%
$25,000,001 and up: 10.9%

Any married couples filing jointly in New York must pay state income tax at these rates:

$0 to $17,150: 4%
$17,151 to $23,600: 4.5%
$23,601 to $27,900: 5.25%
$27,901 to $43,000: 5.9%
$43,001 to $161,550: 5.97%
$161,551 to $323,200: 6.33%
$323,201 to $2,155,350: 6.85%
$2,155,351 to $5,000,000: 9.65%
$5,000,001 to $25,000,000: 10.3%
$25,000,001 and up: 10.9%

Finally, if you file tax as the head of a household, these are the state income tax bands:

$0 to $12,800: 4%
$12,801 to $17,650: 4.5%
$17,651 to $20,900: 5.25%
$20,901 to $32,200: 5.9%
$32,201 to $107,650: 5.97%
$107,651 to $269,300: 6.33%
$269,301 to $1,616,450: 6.85%
$1,616,451 to $5,000,000: 9.65%
$5,000,001 to $25,000,000: 10.3%
$25,000,001 and up: 10.9%

In New York, casinos, sportsbooks, and other gambling companies are also instructed to withhold some of your winnings for state income tax. The thresholds are the same as the federal withholding tax thresholds – $1,200 for slots, $5,000 for lotteries, and so on.

The gambling companies are supposed to provide you with a Form IT-2102-G, which is the state’s equivalent to a federal Form W-2G. It declares any amounts withheld from your winnings for state income tax purposes. Once again, you may get some of this money back after filing your state income tax return.

How to file

Follow these steps to declare any gambling winnings when filing your state income tax return in New York:

Download Form IT-201.
Look out for line 16 of the form, which is where you can declare your gambling winnings.
Enter the same amount that you declared on Line 7a of Form 1040 when filing your IRS return, and specify it as gambling winnings.
If you have paid any withholding taxes, add up the amounts on each of your IT-2102-G forms, and then enter the total on line 72 of form IT-201.

How to pay local taxes on NY gambling winnings

There are two potential reasons why you may be liable to pay local tax on gambling winnings in New York:

You live in New York City, or you spent part of the year living in NYC. If so, you will pay local income tax, which also applies to gambling winnings. The city has four tax brackets, which range from 3.078% to 3.876%.
You won money at Empire City Casino in Yonkers, but you are not a Yonkers resident. If so, you will need to pay a flat 0.5% local income tax, which is levied on all non-residents that earn income in the city.

Fortunately, you do not need to fill in another form, as IT-201 covers local taxes too. If you paid any local NYC withholding taxes on gambling winnings, declare them on line 73 of IT-201. Meanwhile, if you paid any local withholding tax in Yonkers, that can go on line 74 of your IT-201 form.

Are lottery winnings taxable?

Yes, any lottery winnings are taxable in New York. You will need to pay federal income tax, state income tax, and also local income tax if you live in New York City.

Players can deduct the cost of the lottery ticket, but you will be liable for tax on the remainder. Any winnings of $5,000 or more will be subject to withholding tax, and you may then need to pay more when filing your tax return, depending on the amount you won.

What if I win a lottery prize as part of a group?

The IRS has a special form for this eventuality: Form 5754. You can fill it out and send it to the payer, such as the New York Lottery or the Multi-State Lottery Association, which will enable the payer to accurately prepare a Form W-2 and a Form IT-2102-G for each winner.

That will allow you to accurately declare your winnings and the withholding tax paid when you fill in Form 1040 and IT-201.

NY gambling tax FAQ

Can I deduct gambling losses?

Yes, you can deduct any gambling losses from your gambling winnings when filing your taxes in New York. To do so, you must itemize your wins and losses on line 27 of Schedule A, Form 1040.

This can reduce or wipe out your tax liability. It essentially means that you only need to pay tax if you earn a profit from all gambling activities over the course of a year. For example:

If you win $2,000 and you lose $2,000, you will not need to pay any tax.
If you win $2,000 and you lose $1,500, you will only need to pay tax on your $500 in profit.
If you win $2,000 and you lose $3,000, you will not be liable to pay any tax, but you cannot deduct gambling losses from other income, such as your wages.

To be clear, you cannot deduct more than your winnings. It is also important to note that related expenses, such as gas for driving to a casino or drinks while at a casino, cannot be deducted either. If you intend to deduct losses from your winnings, keep a meticulous record of each bet placed throughout the year:

Note the date of each bet, the type of wager, and where you placed it.
The amount you won or lost.
Keep a record of any tickets, receipts, credit and debit card records, PayPal records, and so on, that back up the claims.

We also recommend consulting a tax professional before deducting losses from gambling winnings.

What if I don’t get a Form W-2G from an NY gambling site (or lose the one I got)?

If you do not receive a Form W-2G, or you lose the one you received, you can contact the casino or site and ask for a new copy. Alternatively, you can get in touch with the IRS and ask it to send you a copy, as it will always receive a duplicate of each Form W-2G you receive.

How will the government even know I played?

Any substantial wins that you earn will be reported to the IRS and the state government, as they will receive a W-2G and an IT-2102-G respectively. This will apply to online wagers and any bets placed in-person.

There is also a digital record when you are paid out electronically, so it is inadvisable to try to shield your winnings from the authorities. Finally, you may be audited if your lifestyle exceeds your reported income. For example, if your reported annual salary is $40,000, but you drive luxury cars and jet around the world, you could end up on the government’s radar, sparking an investigation into your gambling activities.

What if I don’t pay?

If you do not pay state income tax when due, the New York Department of Taxation and Finance will charge you a penalty, plus interest. The charge is 0.5% each month, up to a limit of 25%. The state of New York can also issue penalties for negligent returns, fraudulent returns, and frivolous returns.

Anyone that lives in New York City will be charged 5% each month of delinquency for failure to file a timely return, up to a 25% maximum. Interest will automatically be added to overdue tax bills too.

Finally, the IRS can impose a 0.5% failure to pay penalty each month. This goes up to a limit of 25% too. You must also pay interest on overdue federal income taxes, at a rate 3% higher than the federal short-term interest rate. For example, if the short-term rate is 4.5%, you will be charged 7.5%.

Eventually, the IRS may seize your assets to cover your overdue tax liabilities. That could include your bank balance, car, or home. You may even have your passport revoked.

Resources used on this page

These are the resources that we used when compiling the information on this page:

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Written by

Martin Green

Fact checked by

Bart Shirley