If your winnings exceed a certain threshold, usually $5,000, federal and state taxes might be automatically withheld. Your winnings are taxable income even if they were added to your online account balance and never withdrawn. That includes winnings from sports betting, slot machines, pari-mutuel wagering, poker and the Arizona Lottery. Are Gambling Winnings Taxable In Arizona?Īll online gambling winnings, whether placed online or in person at casinos, are taxable. Bonus bets expire in 7 days from issuance. Rewards issued as non-withdrawable bonus bets. All promotions are subject to qualification and eligibility requirements. Failure to do so can result in penalties for Arizona taxpayers, so it's crucial to keep accurate records of your gambling activity and consult a tax professional if you have any questions. It doesn't matter if it is a winning sports bet, lottery winnings or slots at Arizona casinos. Gambling winnings in AZ are considered income and must be reported on state and federal tax returns even if you do not receive a W-2 G, according to the IRS. With new bettors in Arizona, this important to emphasize. The state income tax rate in Arizona ranges from 2.59% to 4.50%, which is the rate your gambling winnings are taxed.īettors have a responsibility to report their winnings on their income tax return. The effective tax rate is the actual percentage you pay after taking the standard deduction and other possible deductions. Marginal tax rate is the bracket your income falls into. It's important to consider all of your AZ gambling winnings when preparing your taxes because those winnings, when added to your annual income, could move you into a higher tax bracket. Your tax rate depends on your filing status, annual income and tax bracket.

Nj sports gambling winnings tax