Ohio gambling taxes

Do I have to pay taxes on gambling winnings in Ohio?

Yes. Under the tax code, gambling winnings are taxable income in Ohio like any other form of income. You have to claim that income when you file your taxes.

What is the tax rate on gambling winnings in Ohio?

You simply add the amount that you won to your overall taxable income, and you pay the rate that applies to you as a taxpayer.

When it comes to Ohio state income tax, they have a graduated rate structure. The Ohio Department of Taxation site is still listing figures for income earned in 2023 at the time of this writing.

For that year, people that reported $26,050 or less were completely exempt from the tax. For those with income that exceeded this amount, the rate spanned from 2.765% on the low end up to 3.99% for the highest income earners.

There are also municipal income taxes in Ohio, and the rate is 2.5% in Columbus, 2.25% in Toledo, 2.1% in Cincinnati, and 2% in Cleveland. Other municipalities have taxes as well with lower rates.

Is the IRS notified when you win money gambling?

Small wins are not reported to the Internal Revenue Service, but larger ones will be reported through the utilization of IRS Form W-2G. The form should be issued if you win:

Do you have to report the income if you do not receive Form W-2G?

Yes, income that is derived from gambling is taxable in Ohio. To follow the letter of the law, you must report the income, even if it is $10.

Are Ohio betting apps required to withhold taxes on winnings?

In most situations, the answer is no, Ohio betting apps will not withhold a portion of your winnings. However, there are exceptions to the rule.

This is a quote from an IRS publication on gambling income and taxes:

“If you have won more than $5,000, the payer may be required to withhold 28% of the proceeds for Federal income tax. However, if you did not provide your Social Security number to the payer, the amount withheld will be 31%.”

On the state level, betting operators are required to withhold 4% of winnings that exceed the threshold for the form of gambling in question.

Ohio Lottery taxes

As we have emphasized, there are no separate taxes for the Ohio Lottery or any other type of gambling in Ohio. Income is taxable, it’s as simple as that. If you win the lottery, you are receiving income, so you have to claim it along with your other income.

Benefits of Ohio gambling taxes

This is the way that the Gross Casino Revenue tax proceeds are utilized by the state:

With regard to sports gaming revenue, after expenses have been paid, 98% of the money is used to fund extracurricular youth activities and interscholastic athletic programs. The remaining 2% is utilized to support responsible sports gambling.

OH gambling winnings tax calculator

There is no authentic Ohio gambling tax calculator because there isn’t a gambling tax at all. Plus, people are in different tax brackets, and they may or may not be entitled to certain deductions, credits, etc.

There are well-developed tax calculation tools out there for income taxes in general. Gaming winnings are income as we have repeatedly emphasized, so you can include your gaming winnings if you use one of these income tax calculators.