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Thirty U. S. You're not being taxed based on each bet, but on the aggregate for the tax year. Sports betting winnings of over $600 (or if the amount is 300 times the original bet) are subject to a 24% withholding rate tax. Yes, all income must be reported to the IRS - even if it falls beneath that threshold. While you still have to report sports betting winnings that $600 threshold, you will not be subject to federal taxes on that money, several tax experts confirmed to MarketWatch. For example, New Jersey has a 3% withholding tax on gambling winnings as the state considers it taxable income, while Nevada has no tax on winnings because there is no income tax in Nevada. Failing to report taxable income like sports betting winnings may lead to penalties.

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