Ohio Gambling Tax Laws
Gambling winnings are fully taxable by the IRS, the State of Ohio, and four cities throughout the state. These winnings are taxed as "ordinary income" at the same rates as other income is taxed to the taxpayer by the respective agency.
In the case of state taxes, all casinos must withhold 4 percent of your winnings (over the threshhold for reporting, anywhere from $600 to $5,000) and pay them to the state on a quarterly basis, which will be reported as deducted and withheld on Form W-2G (the casino operator will hand you this form).
In addition, gambling winnings are subject to local city taxes in the following places:
- Columbus: 2.5% applies to both residents and non-residents
- Cleveland: 2% applies only to residents
- Cincinnati: 2.1% applies to both residents and non-residents
- Toledo: 2.25% applies to both residents and non-residents, with a $2500 exemption that is claimed by filing a Toledo City tax return.
Federal taxes also apply to gambling winnings (and losses). The gaming establishment is required to issue a form called a Form W-2G (titled: Certain Gambling Winnings) to report the winnings/losses. There is a common misunderstanding that you don't have to claim gambling income if the casino, horse track, or other gaming establishment fails to give you a W-2G. But even if you don't get the form, you will be on the hook for federal taxes.
Definition of Gambling: Ohio Revised Code Section 2915.01
|Enforcement Agencies||Ohio Department of Taxation|
|What Gambling Winnings are Taxable?||
Winnings from lotteries, bingo, raffles, horse races, and casinos including cash winnings and tangible prizes such as cars or vacations.
|What Taxes will be Withheld from my Winnings?||State and local city tax|
Note: Because gambling and tax laws can sometimes get complicated, it may also be a good idea to consult an experienced tax lawyer in Ohio if you have questions about your specific situation.
Research the Law
- Ohio Law
- Official State Codes - Links to the official online statutes (laws) in all 50 states and DC.
Ohio Gambling Tax Laws: Related Resources
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