What is the New York state tax rate on gambling winnings?

New York taxes gambling winnings as ordinary income at graduated rates from 4% up to 10.9% for taxable income over $25 million. Most bettors fall between 5.5% and 6.85%.

Do NYC residents pay extra tax on gambling winnings?

Yes. New York City residents owe city personal income tax on gambling winnings at rates up to 3.876%, on top of the state rate. Yonkers residents owe an additional resident surcharge.

Does DraftKings or FanDuel withhold New York state tax?

New York requires sportsbooks and casinos to withhold state income tax on W-2G-qualifying wins — typically 10.9% for residents and 8.82% for non-residents. That withholding is a credit against your final NY tax liability at filing.

Can I deduct gambling losses on my New York return?

New York allows an itemized deduction for gambling losses up to the amount of reported winnings, but only if you itemize on your federal return and on NY Form IT-196. Casual bettors who take the standard deduction cannot net wins against losses.

What form do I use to report gambling winnings in New York?

Residents report winnings on Form IT-201 as part of federal AGI carried over from Form 1040. Non-residents who won in NY file Form IT-203. Attach copies of any W-2G forms received.

Back to tax guides

New York · Gambling Tax · Updated 2026-07-21

New York Gambling Tax Guide (2026)

New York has one of the most aggressive gambling tax regimes in the country: state rates up to 10.9%, NYC and Yonkers local surtaxes, and mandatory sportsbook withholding on W-2G-qualifying wins. This guide covers how to calculate what you owe on DraftKings, FanDuel, Caesars, and NY Lottery winnings — and how to file it correctly on IT-201 or IT-203.

How New York taxes gambling winnings

Federal baseline. The IRS taxes all gambling winnings as ordinary income. Sportsbooks and casinos issue Form W-2G on wins of $600+ at 300:1 odds and withhold 24% federal tax on wins over $5,000.
New York state tax. Winnings are added to your NY taxable income and taxed at bracket rates from 4% up to 10.9%. Most bettors fall between 5.5% and 6.85%.
NYC personal income tax. If you are a New York City resident, gambling winnings are also subject to the NYC personal income tax — up to 3.876%.
Yonkers surcharge. Yonkers residents owe an additional resident income-tax surcharge (roughly 16.75% of their state tax liability).
Sportsbook withholding. NY requires operators to withhold state tax on qualifying W-2G wins — generally 10.9% for residents and 8.82% for non-residents. That withholding becomes a credit at filing time.

2026 New York state income-tax brackets

Gambling winnings stack on top of wages and other income. Verify current brackets with the NY Department of Taxation and Finance before filing.

Taxable income (Single / MFJ)	NY rate
Up to $8,500 (single) / $17,150 (MFJ)	4.00%
$8,500 – $11,700 / $17,150 – $23,600	4.50%
$11,700 – $13,900 / $23,600 – $27,900	5.25%
$13,900 – $80,650 / $27,900 – $161,550	5.50%
$80,650 – $215,400 / $161,550 – $323,200	6.00%
$215,400 – $1,077,550 / $323,200 – $2,155,350	6.85%
$1,077,550 – $5,000,000 / $2,155,350 – $5,000,000	9.65%
$5,000,000 – $25,000,000	10.30%
Over $25,000,000	10.90%

NYC and Yonkers local taxes on gambling

A New York City resident who wins $10,000 on DraftKings owes three layers of tax: federal (up to 37% at the margin, 24% withheld on qualifying wins), New York state (up to 10.9%), and NYC personal income tax (up to 3.876%). A Yonkers resident pays state tax plus a resident income-tax surcharge. Non-residents of NYC and Yonkers who bet on New York-licensed platforms owe state tax but not the local city tax.

Worked example: $10,000 sports-betting win in Manhattan

Gross winnings: $10,000
Federal withholding at payout (24%): $2,400
NY state withholding at payout (10.9%): $1,090
Net cash received: $6,510 (before any additional NYC tax at filing)
At filing, NYC tax of up to 3.876% (~$387) is added on your IT-201; the withheld state tax is credited against your final NY liability.

Run your own scenario in our gambling tax calculator.

Deducting gambling losses in New York

NY allows an itemized deduction for gambling losses up to the amount of reported winnings — but only for filers who itemize federally and complete Form IT-196. Casual bettors who take the standard deduction cannot net wins against losses at the state level, so you can end up owing NY tax in a break-even or losing year. Keep a contemporaneous session log — see our IRS session method guide for the required detail.

How to file: IT-201 (residents) vs IT-203 (non-residents)

Residents. File Form IT-201. Federal AGI (which includes gambling winnings) carries over. NYC and Yonkers taxes are computed on the same return.
Non-residents who bet on NY platforms. File Form IT-203 to report NY-source winnings and claim any withheld NY tax. Then claim a credit for taxes paid to NY on your home state's return.
Attach every W-2G. If federal or NY tax was withheld, you must attach copies of Form W-2G to your return to claim the withholding as a credit.

Common questions

Do I owe NY tax if I live outside New York but bet on DraftKings NY?

Yes. Winnings from a New York-licensed platform are NY-source income. Non-residents file Form IT-203 and claim a credit for the NY tax on their resident state return.

Does NY tax daily fantasy sports (DFS) winnings?

Yes. DFS winnings are ordinary income for NY purposes and are taxed the same way as sportsbook or lottery winnings.

What if the sportsbook didn't withhold NY tax?

You still owe the tax at filing. Withholding is a prepayment, not a floor — if the operator didn't withhold, plan to pay the full state (and NYC or Yonkers) liability with your return or through estimated payments.