US Tax Calculators
Gambling Loss Deduction Calculator
See your taxable gambling income under the new rule that limits loss deductions to 90% of your losses, starting in 2026.
This is a rough estimate for education, not tax advice. It shows the federal 90% cap mechanics only; losses are deductible only if you itemize (Schedule A) and only up to your winnings, and state rules vary widely. Nothing you type is sent anywhere.
How the new 90% cap works
Starting with the 2026 tax year, the OBBBA limits gambling loss deductions to 90% of your total losses (previously it was 100%, up to your winnings). Your gambling winnings are still fully taxable income. If you itemize, you can deduct the lesser of 90% of your total losses or your total winnings. Because only 90% of losses offset winnings, a gambler who wins and loses the same amount over the year (or even ends up behind) can still owe tax on "phantom income": taxable income that does not reflect any real economic profit.
Frequently asked questions
Do I need to itemize to deduct losses?
Yes. Gambling losses are only deductible as an itemized deduction on Schedule A, and only up to the amount of your winnings; if you take the standard deduction, you cannot deduct gambling losses at all.
Does this apply to casual and professional gamblers alike?
The 90% cap under this provision affects both, though professional gamblers have additional rules for business expenses separate from wagering losses.
Why is this getting so much attention?
Because it can create tax owed even for break-even or net-losing bettors, which is a new and counterintuitive result compared to the prior 100%-of-winnings rule.
Related: the quarterly tax estimator and the tax bracket calculator.