NJ Gambling Winning Tax

How Are Gambling Winnings Taxed in NJ?

Looking for information about NJ gambling winning tax? You’re in the right place. Stick with us as we see how much you need to pay in tax for getting lucky with your wagering in New Jersey!

You have to pay differing amounts of tax depending on what kind of gambling you’re undertaking. The good news is that it’s pretty easy to use a NJ gambling tax calculator to figure how much you have to pay regardless of whether it’s for sports betting, casino gaming or playing the lottery. Keep reading to find out more!

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Do you have to pay NJ gambling winning tax?

Sadly, yes, you will have to pay taxes and fees on whatever winnings you make from gambling in New Jersey. Even though doing something like winning the New Jersey lottery or making a massive win at an NJ online sportsbook may be hugely lucky, you’re still going to have to pay tax as part of your gross income tax.

We should note that you will also have to pay gambling tax if you made some winnings on an out of state lottery such as MegaMillions or PowerBall. Similarly, if you live over the border in New York or Pennsylvania, and made some winnings from a New Jersey online casino or sportsbook, then your payout would also be taxable.

Just to clarify things even further, you will have to pay the same tax rates on your winnings regardless of whether they were made in the online or physical domain. This means that you have to pay the same amount of tax on winnings made at a bricks-and-mortar casino in Atlantic City as well as an online casino that serves the whole of New Jersey.

How much NJ gambling tax do you have to pay?

The amount of tax that you have to pay on your gambling winnings varies according to what you are gambling on. For most things like sports betting and casino gaming, you will have to pay 3% of whatever payout you received from the New Jersey gambling provider.

However, the amount in taxes that you have to pay for winning the lottery varies according to how much you actually win. So to clarify things, we’ve set aside separate sections that discuss what levels of tax you have to pay according to what it is that you are actually wagering on.

What is the NJ gambling tax rate for sports betting?

You have to pay a standard rate of 3% in gambling tax for any winnings made from sports betting. This applies regardless of whether you are betting at a physical sportsbook outlet at one of New Jersey’s casinos or racetracks, or whether you are betting on one of the dozens of online sportsbooks in the Garden State.

You shouldn’t need any kind of tax calculator to figure how much gambling tax you need to pay. Let’s say that last year, you put down one bet on the New Jersey Devils in the NHL. This bet won and you made $100 in winnings. As a result, you’d have to pay $3 in gambling tax at the end of the year. The reality might be a little more complicated than this, but that’s the general concept.

The tax rate for casino gaming in New Jersey

The standard 3% gambling tax rate also applies to casino gaming in the Garden State. This tax rate will be applied to all winnings regardless of whether they were made in an Atlantic City physical casino or one of the many online casinos that serve New Jersey.

You will also pay the same tax rate on the winnings regardless of whether they were made from playing simple slot games or whether they were playing more advanced live dealer games of blackjack, baccarat or roulette. So if you made $1,000 from your casino gaming over the course of a year, then you’d have to pay $30 in New Jersey gambling tax.

How much do you have to pay in taxes for poker in NJ?

Poker is another form of gambling that gets hit with the same 3% gambling tax rate in New Jersey. For example, if you made $200 from your poker gaming in one year, you’d end up having to pay $6 in taxes.

Such a tax rate applies to all forms of poker. This means that you’ll have to pay the same from winnings at a poker room in a glittering casino or if you made them at a humble New Jersey online poker site. There is also no difference between whether you made your winnings from Texas No Limit Hold ‘Em, Omaha Hi/Lo, Razz, Caribbean stud poker or any other variant.

Taxing your horse betting winnings at New Jersey racetracks

You might be able to bet on horse racing from a mere 18 years of age rather than 21 in New Jersey, but you will still have to pay the standard 3% tax rate on any winnings you make. This might come as a shock considering that you can only put down a parimutuel bet on horse racing in the Garden State.

Again the 3% gambling tax rate makes things pretty simple to figure out and it’s applicable to all horse races that you’re likely to bet on from a regular race in Monmouth Park to a big national race like the Kentucky Derby. The tax rate also applies regardless of whether you’re betting at a New Jersey online racebook or if you are betting at a retail outlet at one of the racetracks in the Garden State.

The gambling tax rate for bingo winnings

Bingo is another form of gambling that attracts the same 3% gambling tax rate. While it might not seem the most skilful form of gambling, you’ll still need to report any winnings made on your New Jersey tax return. Again, this applies for both online and in-person bingo gaming. It doesn’t matter whether it’s a humble charity bingo event or bingo at a big online casino site, as any winnings made will still have to be submitted to the tax authorities.

Do you have to pay tax on winnings from Daily Fantasy Sports?

Yes, you do. Any winnings made from daily fantasy sports is considered to be regular gambling winnings and must also be declared. You will have to pay 3% gambling tax on any winnings made from your DFS gaming. So if you made $300 from daily fantasy sports over the course of a year, you would have to pay $9 on your New Jersey tax return. Some people insist that daily fantasy sports isn’t a regular form of gambling as it involves much more in the way of skill compared to things like slot machine gaming. While there is some sense in this, such an argument won’t hold with the tax authorities and you’ll still have to pay 3% on any winnings made from your DFS gameplay.

Using your NJ gambling tax calculator for lottery winnings 

Playing the lottery is different from other kinds of gambling, and so it follows that you will have to pay tax on your lottery winnings a little differently too. The first thing you should realize is that you only have to pay gambling tax if your lottery winnings are over $10,000. So if you won $10,001, you’d have to pay tax, but you wouldn’t if you won one dollar less than that amount.

The second thing to understand is that you have to pay different amounts of tax according to how much you win with your lottery gaming. If you were lucky enough to win anywhere between $10,001 and $500,000, then you will have to pay 5% in taxes. However, if you got seriously lucky and won over $500,000 from a lottery, then you would be hit with an 8% gambling tax rate.

We should also mention the fact that you should always provide a valid Taxpayer Identification Number, otherwise you could get hit with the higher 8% gambling tax rate for all lottery payouts over $10,000. Finally, we should note that these tax rates apply regardless of whether you bought your lottery ticket at a physical kiosk or an online lottery site. The same tax rate also applies to any kind of state-level, national or international lottery that you are playing.

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Do you have to pay tax if you use offshore gambling sites?

You might have seen some offshore gambling sites that target US customers. However, we would always advise against using these offshore operators. This is because such gambling sites are illegal, dangerous and you’d have to pay tax on whatever winnings you’d made anyway.

There is a statement on the NJ Treasury Division of Taxation site that is dedicated to lottery and gambling winnings, and this statement makes it explicit that any winnings from illegal gambling will still have to be submitted as part of your regular tax return.

However, this isn’t the only reason why you should never sign up to an offshore gambling site. Here are some simple reminders as to why you should only play at fully regulated online sportsbooks and casinos in New Jersey:

Legality

Only those online gambling sites that are regulated by the New Jersey Division of Gaming Enforcement are acting legally when they operate in the Garden State. Plus you’ll actually be breaking the law if you decide to play at any offshore gambling sites.

Safety

The New Jersey Division of Gaming Enforcement will only grant licenses to those operators that are able to show that they offer customers a 100% secure and safe gambling environment. This is why all of the legit gambling sites featured on our resource have the minimum SSL-level encryption technology required to keep your data and deposits safe. So don’t run the risk of playing at offshore gambling sites who have no requirements to look after your online security.

Fairness

The New Jersey Division of Gaming Enforcement also tests each online gambling site it licenses to make sure that it is offering a completely fair wagering service. This is in contrast to what you get at offshore casinos where none of the games have been tested for fairplay. Plus, how can you trust that the illegal offshore sportsbook is going to pay you whatever winnings you make from your bets?

How do you pay your NJ online gambling taxes?

You can simply add any winnings made from gambling in your New Jersey tax return. You will see a section called Net Gambling Winnings on your New Jersey Gross Income Tax return and this is where you have to include any taxable New Jersey Lottery and gambling winnings.

Bear in mind that you may be required to provide evidence of your gambling activity in the form of tickets, an online record and so on. While this evidence doesn’t need to be submitted as part of your tax return, it might be required later on if you need to support any claim of winnings or losses.

Obviously not everyone wins every time they gamble. Thankfully the tax system takes care of this fact as you can offset any gambling winnings you make with any losses incurred. Just remember that these losses should have occurred in the same year as when you made your gambling winnings. Plus we should note that if you made more losses than winnings from your gambling, this should be reported as a net zero on your overall gambling winnings.

Conclusion: Check back to get the latest on NJ gambling winning tax

We realize that discussing things like tax is rarely exciting, but it’s essential that you know where you stand when you gamble. The good news is that the current rates of NJ gambling winning tax are fairly respectable and you shouldn’t have to worry about paying your fair share.

After all, it is these tax revenues that make sure that New Jersey can continue to have such an excellent and healthy online gambling scene. So be sure to bookmark this page to stay up to date about any changes made in how much you have to pay when you gamble in New Jersey.

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NJ gambling winning tax FAQ 

❓ Does NJ have a federal tax on gambling winnings?

Read our guide to see if there is any kind of NJ gambling winning tax in the Garden State. Such information is hugely important as you will want to know that you are complying with law should you get lucky with anything from sports betting to casino gaming. Don’t forget that we can also give you a great list of NJ legal gambling sites that you can use to try your luck at. 

✅ What is the NJ federal tax rate for lottery winnings?

Check out our guide to see how much tax you have to pay should you be lucky enough to win money on the lottery. This will help you understand whether you’ll need to use some kind of NJ gambling tax calculator, or whether you can simply do the arithmetic in your head. We’ll also let you know the gambling age in NJ so that you can be sure that you’re actually legally allowed to play the lottery.

👀 Where can I get a gambling winnings tax calculator?

Make sure that you read our guide to see how you can use an NJ gambling tax calculator. This will prove invaluable for figuring out how much you need to pay should you get lucky with your gambling. Plus we can help answer other important questions such as, ‘Is online betting legal in NJ?’ so that you have all you need to know where you stand in regards to the law when you try your luck in the Garden State. 

🎰 Do I have to pay tax on online casino winnings?

We’ll give you all of the information you need to know about playing at a legal NJ online casino. This means that you should check out our guide to see what kinds of NJ gambling winning tax you’ll have to pay should you get lucky on anything from slots to blackjack, baccarat and roulette. Plus we’ll help you see what trust factors to look for in any fully regulated NJ casino site.

🎲 How much of my NJ casino winnings will be taxed?

We’re never afraid to ask awkward questions. So just as we have asked, ‘Is online poker legal in NJ?’ we’ll also see whether you have to pay any taxes on any winnings made at a casino in New Jersey. All of which should help you understand whether you will need to use any kind of NJ gambling tax calculator or whether you can withdraw and enjoy your winnings as normal. 

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