Pennsylvania also has a state tax rate of 3. On the state level, a flat tax has gone into effect in Arizona in 2023, and the rate is 2. 00 percent state sales tax rate, a max local sales tax rate of 2. 2 Operated by Mohegan Sun Pocono. While Pennsylvania’s lawmakers cannot make up the entire $3 billion budget deficit through gambling revenues, they will save the taxpayers hundreds of millions of dollars over the months and years. 1001: Definition of Interactive of Game: A gambling game offered through the use of communications technology that allows a person utilizing money, checks, electronic checks, electronic transfers of money, credit cards or any other instrumentality to. Between July 21, 1983 and Dec. For federal taxes, you need to fill out a Schedule 1 (Additional Income. However the New York State tax rate for gambling varies according to your income. But if your income is over $1,077,550, then. Don't hesitate to report someone else's. The state tax rate in Maryland is between 2% and 5. Estates and trusts are taxpayers for Pennsylvania personal income tax purposes. Tax revenue generated from sports wagering during September 2022 was $18,078,109*. The winner must pay 24% of the fair market value of the prize to the payer as tax withholding. 6 billion in 2019, up 3. Whether it’s in the lottery or in a casino, they must pay a percentage of their winnings to the federal government. The percentage, which was introduced at 25% when legalized, gets reduced by five points every 12 months until it. Gambling Taxes Finance A record 50. Nov 21, 2023IMPORTANT: For both PA residents and non-PA residents, noncash prizes from playing games of the Pennsylvania Lottery are not taxable, but you must include your noncash. You can see the Pennsylvania Department of Revenue's guide to gambling and lottery winnings for a full rundown. 07% (state) All gambling winnings in the United States are taxed at a flat rate of 24%, and gamblers are liable to pay taxes on these winnings as failing to do so is a federal crime. Cons. The change is per ACT 32 guidelines: Out of State Credits for 2012 through 2017 — May only be applied on the ACT 511 tax rate (normally 1%) levied by your municipality/school district. The highest rates are on Rhode Island at 51 percent, whereas in DC and Colorado it falls to 10 percent. Paul Waggoner, R-Hutchinson. Pennsylvania Gambling Tax Rate. It’s the second-best online casino revenue total in the state’s history. In New Jersey, taxes are just 8. Pennsylvania Betting Sites; Rhode Island Betting Sites; South Carolina Betting;. 07%. As for mobile sports betting, where most of the “action” is, the rate is 13%. Miscellaneous Provisions § 13B61. Instructions for PA-41 Schedule A Interest Income and Gambling and Lottery Winnings PA-41 A IN 09-20 PA-41 A 1 The instruction for Line 14, Gambling and lottery winnings were revised for an estate and trust electing to file a combined tax return for federal income tax purposes basedWhat is the Federal Gambling Tax Rate? Standard federal tax withholding applies to winnings of $5,000 or more from: Wagering pools (this does not include poker tournaments). S. There has been a change in the taxes to which Out of State Tax credits may be applied to taxes due for Tax Year 2012 and forward. pa. 36 billion, down 42. §7303 (a) (7). Alaska has no gambling-winning state taxes on gambling winnings; You are liable to pay the federal tax of 24%;. The withholding requirement is in effect for prize payments made after. S. 07%. 1 Operated by Parx Casino. Most people are casual gamblers, but some are professionals who get their income from gambling. However, gambling winnings from unlawful gambling activity must still be reported. 1 Closed July 1-16, 2020 due to Covid-19 restrictions. Anyone aged 21 and over, from that point on, was allowed to place sports bets over the internet or in person at Pennsylvania’s casinos, racetracks, and former racetracks. The tax rate is 8. “Any online casino will offer bettors real money gambling options on a range of games including casino table games, slots, sports betting sites and poker rooms. 1. So, for instance, if you make $42,000 annually and file as single, your federal tax rate is 22%. In the US, the federal gambling tax rate is a flat 24% on all winnings. In New Jersey, it is only 3%. This rate is higher than the online casino tax rates in New Jersey and Michigan, but considerably less than the 54% rate that Pennsylvania applies to slot. Similarly, “gross interactive gaming revenue” and “gross interactive airport gaming revenue” are defined to allow for the deduction of tangible promotional items. So if a bettor makes 10 wagers of $1,100 each and goes 5-5 on those. See Table 6. 2 percent year-over-year. The withholding rate under Section 3402(q) applicable to prizes of $5,000 or more from sweepstakes, wagering pools, some parimutuel pools, jai alai, and lotteries (previously 25%) is now 24% for taxable years beginning after December 31, 2017. PA has the lowest rate of all states with a flat tax. “Fifty-seven dollars isn’t going to pay any of my bills. Video Gaming Terminals. View all posts by Katie Kohler. As far as state Rep. However, it’s important to remember that the federal government taxes gambling income at 24% in every state, so you can never fully avoid taxes on those big wins! The tax rate on slots is one of the highest in the nation. Information for workers, community groups, and employers about the federal Earned Income Tax Credit (EITC). §7303(a)(7). 3% for the highest earners. Simply include the amount you won on your state income tax return. At tax time, you’ll receive Form W-2G for all reported winnings showing the amount you won and the taxes withheld. The winner’s responsibility Pennsylvania has its own income tax rate of 3. By way of another comparison, New Jersey taxes online slot revenue at 17. pa. 58%. Whether it's $5 or $5,000, from the track, an office pool, a casino or a gambling website, all gambling winnings must be reported on your tax return as "other income" on Schedule 1 (Form 1040). MONTHLY INTERACTIVE GAMING REPORT 1 WIND CREEK Interactive SlotsSlot machines and internet gaming comprise about 70% of gaming revenue, followed by table games. While some states subject sports betting and fantasy contests to the same general gaming tax, many have taken the opportunity to impose excise taxes in addition to the 0. Pennsylvania tax on gambling winnings Gaming Tax Bulletin 2019-01 -- Department of Revenue Policy Concerning Implementation of New Gaming Initiatives Under Act 42 of 2017. Nevada is comfortable with a 6. According to Eric Ramsey, market analyst for PlayPennsylvania, PA iGaming is tracking more than 33% higher than 2021 through April, putting revenue on pace for $1. § 13B52. Pennsylvania taxes at 34% and 2%, by comparison. Among the questions asked:In Maryland, for example, you must report winnings between $500 and $5,000 within 60 days and pay state income taxes within that time frame; you report winnings under $500 on your annual state tax. 37 billion. Contact us today at (973) 470-0800 or law@kridel. 2. In The Empire State, all gambling winnings are taxable and subject to a 24% federal tax rate on top of an NY state gambling tax rate, which can range from: 4% for up to $8,500. Sports Betting 36% Fantasy Sports 15% Visit mypath. National Problem Gambling Helpline – (800) 522-4700. Following testing, the first wave of online casinos went live in July 2019. PA casinos will have to pay a 36% tax on winnings to the state; Sports. Cons. The flat rate for taxes on gambling winnings is set at 24% initially. What Are Virginia Gambling Tax Rates? Gambling winnings are subject to 24% federal tax, which is automatically withheld on winnings that exceed a specific threshold (see next section for exact amounts). This week in PA gaming, we talk onling gambling taxes across the US, the latest on the Wire Act court case, and a sports betting partner for Wind Creek. 07% more in PA. Taxes can be even more complicated buy is. As soon as the law passed, there were calls to revisit the tax rates. The majority of Massachusetts players are. This means it is possible to play college sports betting, MLB sports betting, and NBA sports betting in the state. Total Betting Handle: $18,892,157,142. All content herein is intended for audiences aged 21 years and older. The lottery is also intended to curb illegal gambling operations that were taking place in PA. The withholding rates for gambling winnings paid by the New Jersey Lottery are as follows: 5% for Lottery payouts between $10,001 and $500,000; 8% for Lottery payouts over $500,000; and. 16 percent for online table games. PA gambling tax is 24% on all gambling and an additional 3. If there are no net winnings, enter a zero here and on Line 8 of the PA-40, Personal Income Tax Return. Pennsylvania casinos are subject to the highest effective tax rate in the country. For noncash gambling, there are two options. Overview. There are three distinct tax rates of online. If you decline a W-9, backup withholding will be withheld at a 28 percent tax rate. Federal Gambling Winnings Tax RateCurrently, Pennsylvania’s personal income tax is a flat tax rate of 3. 07%. The actual amount will depend on your state’s particular tax rate. 3). I am not a professional gambler. Despite tax rates of 54% for online slots and 16% for online table games and poker, PA became the first state to cross $1 billion in tax revenue. $0 – $11,000. S. 44 billion in taxes tied directly to gaming revenue, an increase of 5. Gambling winnings are fully taxable by the Commonwealth of Pennsylvania. If you withheld state income tax on a payment of gambling winnings, you may enter it in box 15 of Form W-2G. Sin taxes accounted for nearly $1. License applicants are required to pay a one-time fee of $10 million for sports betting in Pennsylvania. dollars of tax. S. Pennsylvania Sports Betting Taxes. Senator Gene Yaw introduced legislation in Nov. Additionally, the cost of the retailer was changed from 6 percent to 7 percent. By comparison, sportsbooks in No. Federal 24%. The AGA’s State of the States report shows U. 07%. 2021-20 Revenue Excel; 2021-20 Revenue PDF; 2020-19 Fantasy Contests Revenues & Taxes. Act 42 also established the following tax rates for online gambling in Pennsylvania: Online table games: 14%; Online slots: 52%; Online poker: 14%; Online sports betting: 36%; In addition to legalizing online gambling in Pennsylvania, Act 42 created a new category of land-based casinos known as “mini casinos. 4 percent tax rate on adjusted gross sports betting receipts. A 16% tax rate is levied on table games and poker. That’s good for an effective tax rate of 12. Following testing, the first wave of online casinos went live in July 2019. According to the Internal Revenue Service (IRS), any money you win from gambling or wagering is taxable income, according to the Internal Revenue Service. Fantasy Contests Revenue FY 2022/2023. 13 per stick), or $26 per carton of 10 packs. 59% to 4. 07% which applies to all taxable income, including gambling and lottery winnings. subject to the 3. 3. The amounts and rates for 2020 are: $0-$3,000: 2% $3,000-$5,000: $60 + 3% of excess of $3,000Those mandatory reporting thresholds are as follows: Total winnings, or combined bet and profit, of more than $1,200 on a slot machine. INCOME TAX – TREATMENT OF GAMBLING GAINS, LOSSES, AND EXPENSES (Replaces Revenue Administrative Bulletin 2016-3) Approved: December 5, 2022 . And sports betting revenue is on pace for a $560 million year, up 10% YoY so far in 2022. Individuals are also liable for taxes on gambling winnings in PA. But every time sportsbooks lose a $1,100 bet, they only lose $1,000. Pennsylvania law mandates that a percentage of gaming revenue be earmarked for the state’s Compulsive and Problem Gambling Treatment Fund. Jessica Welman . Any gambling winnings you receive in Kentucky are considered income by every relevant taxing authority in the state and the United States . Written by Jessica Welman. Below are the applicable 2023 tax rates: Federal excise tax on wagers authorized by the state. Total adjusted revenue for April 2021 for video gaming terminals (VGTs) was $3,851,012. Online slots, for example, are taxed at a rate of 54%, which leaves little margin for operators. Depending on the number of your winnings, your federal tax rate could be as high as 37% as per the lottery tax calculation. 4% for income between $10,000 and $25,000. Licenses were first granted in Pennsylvania to conduct interactive gaming in 2018. Illustration: Jonathan Hurtarte/Bloomberg Law. The EITC is not a City program. Ohio State Tax Rates on gambling. Both categories are a record over any 12-month. In addition to the state taxes, the federal government levies an excise tax at a rate of 0. Tom Wolf signed H 271 into law, enabling Pennsylvanians to enjoy online casino gambling. The House approved a wide-ranging gaming expansion that also regulates daily fantasy sports and allows for online poker and gambling. Discover the best slot machine games, types, jackpots, FREE gamesBut none have a tax rate anywhere close to Pa. The state imposes a 36% tax on PA sports betting revenue, the highest rate of any competitive commercial market in the US. m. The amount of taxes collected in Pennsylvania is fueled by a 55% tax rate on gross slot machine revenue and 16% on gross table games revenue. WILL THE PENNSYLVANIA LOTTERY WITHHOLD INCOME TAX ON THE TAXABLE WINNINGS? Yes. 07% on top of the federal rate of 24%, which applies to all gambling activities. Newest Updated Feb 22, 2023. The state's operator licensing fees and renewals are among the lowest in the country. Pixel-Shot // Shutterstock. Michigan ranks in the top 10 for all-time dollars bet. m. As a result, players in the state are charged a 3. Luckily, as a PA gambler, you are entitled to the right to deduct your losses from the winnings. 3. Every time bettors lose a $1,100 bet, they lose $1,100. 3% if the patron is a self-employed professional gambler. If there are no net winnings, enter a zero here and on Line 8 of the PA-40, Personal Income Tax Return. For federal taxes, you need to fill out a Schedule 1 (Additional Income. 75% tax rate. Video Gaming Terminals. Live and file in Illinois (rate is 4. Tax revenue generated from sports wagering during April 2021 was $9,466,734*. These states view gambling revenue as a potential source of substantial income for public services and initiatives. Where to bet on sports in PA. Pennsylvania tax on gambling winningsGaming Tax Bulletin 2019-01 -- Department of Revenue Policy Concerning Implementation of New Gaming Initiatives Under Act 42 of 2017. The IRS, and your state or municipality if they assess taxes on your income, consider gambling winnings. because I want to see the impact of a 36% tax rate. RTP. If you have problems with gambling addiction, PLEASE contact here - Ncpgambling. The best PA online sportsbooks are legal sports betting providers that have a wide range of betting markets, top-of-the-line sports betting apps, and outstanding bonuses like risk-free bets and deposit matches. Pennsylvania has just nine casinos operating, but its 55 percent tax rate on slot machine gambling more than makes up for it. Yes, non-US residents must pay taxes on gambling winnings. The gambling institution is required to withhold 24% of your winnings as federal withholding tax, down from the previous 25% under the tax reform law. We will continue to provide current updates on the PA sports betting market and its monthly revenue reports. e. For example, the industry employs nearly 17,000 persons and has generated more than $16. reports record gambling revenue of nearly $4 million How ample? An unfinalized draft we saw of the plan suggests a tax rate of 16% similar to table games but much less than the 54% tax on slots. The Pennsylvania Lottery will automatically withhold PA personal income tax on prizes greater than $5,000 paid after July 12, 2016. Nevada has the lowest rate in the country at just 6. To find the state income tax rate for the current tax year, refer to that year's tax return for the rate in effect. Winning at online casinos in PA is exciting. Pennsylvania personal income tax is levied at the rate of 3. These gambling winnings are subject to federal income tax withholding, typically at a fixed rate of 24%. 75%, and therefore, sees far less revenues than New York, Pennsylvania, Illinois and New Jersey. Unlike New Jersey’s 14. Gambling winnings are fully taxable by the IRS, the State of Ohio, and four cities throughout the state. 1 Operated by Parx Casino. Pennsylvania’s tax rate for sports betting is one of the highest in the country at a. Yes. Pennsylvania charges 36 percent taxes on sports betting and 54 percent on online slots. 0% of its total tax revenue from sin taxes like those on tobacco products, alcohol, or gambling. The state of Pennsylvania also taxes your gambling winnings. 25% tax in. In addition to the rate of gambling winnings, the tax rate on nonresident composite and withholding obligations would drop by 50% over three years. 6 billion generated in commercial gaming revenue in 2019 - the fifth-straight year of revenue growth. O. The winner is expected to pay those taxes when they file their yearly taxes. In Iowa, there's an automatic 5 percent withholding for state income tax purposes whenever federal taxes are withheld. 2023-2024 Tax Brackets and Federal Income Tax Rates Federal Income Tax Calculator: Tax Return and Refund Estimator (2023-2024) 1099 Form: Definition, Who Gets One, How It WorksOur tax calculator can be used in popular gambling states such as CO, IN, KS, LA, MI, NJ, NV, NY, PA, TN, and VA. What’s impressive is how the 36% tax rate that Pennsylvania applies to sportsbook operators has done for its tax revenue. Sports betting taxes are almost always levied as a percentage of the value of the adjusted. § 13C01(1)(iii), tangible promotional items related to sports wagering may be deductible under the criteria set forth within Bulletin 2015-01. In 2009, the AGA reported that $1. your tax rate). Effective for taxable years beginning after December 31, 2017, the withholding rate under Section 3402(q. State taxes are due in the state you won the income and different rules may apply to players from out of state. The most important of these conditions is that you can’t claim losses that total more than your gains. 1 online sports betting market. These vary from 0% at the lowest to 8. C. Regular withholding rate. PA Online Casinos Top $185 Million In Revenue For Second Straight Month. I realize the post is old but its very difficult to find any information regarding this issue. Fact checked for. In the below table, you can see the variety in tax rates across the country. Taxable Gambling Income. The considerable tax revenue has been collected thanks to Pennsylvania’s high tax rate on operators, which charges every sportsbook 36% of revenues. Tax Rate; Personal Income Tax: 3. PA Gambling Tax. July 2020 August 2020 September 2020 November 2020 December 2020 January 2021 February 2021 March 2021 May 2021 June 2021 FYTD Grand TotalFY 2022/2023 Total MONTHLY SPORTS WAGERING REPORT PARX CASINO Total Sports Wagering Handle* $9,829,676 $10,730,014Annex A provides tables of tax rates and allowances for the tax year 2023 to 2024 and the tax year 2024 to 2025. GAMING TAX RATE 53. It took a while for the framework and licensing process to be put into place. Tax revenue generated from sports wagering during September 2022 was $18,078,109*. Pa Tax Rate On Gambling Winnings; Pa Tax Rate On Casino Winnings Payout; PA casinos will have to pay a 36% tax on winnings to the state; Sports bettors are generally subject to a flat 24% tax but tack on 3. What are the Gambling Tax Rates in California? California has a graduated income tax. – 5:00 p. A payer is required to issue you a Form W-2G, Certain Gambling Winnings if you receive certain gambling winnings or have any gambling winnings subject to federal income tax withholding. 5%, 95% CI [3. See 72 PA C. but there’s still news on the sports betting front in Pennsylvania. Pennsylvania also prohibits pool selling and bookmaking; punch boards, drawing cards; private wire for. org or call - 18005224700. State collected lots of tax dollars from gambling. Pennsylvania taxes slots at more than 50 percent and is considering a tax rate of 15 to 20 percent on online gambling. Licensing and regulation are under the jurisdiction of the Pennsylvania Gambling Control Board . For the 22% tax rate paid by typical middle-income households, the breakeven win percentage rises to 58. Arizona allows operators to deduct promotional credits and free bets up to 20% of sports betting handle during the first two years of Arizona sports betting. At this juncture, it seems nearly inevitable that the next piece of legislation will call for an oppressive 54 percent tax rate on online slots, coupled with a 16 percent rate on table games and poker. Сalculating the PA professional gamblers’ tax rate depends on factors like: marital status, tax deduction (one of two types), type of games, etc. Currently, Pennsylvania’s personal income tax is a flat tax rate of 3. Up To $250. The tax rate on online poker and table games is set at 14% of gross gaming revenue with an additional 2% allocated for a local share assessment. 2%. Check out the all-time Pennsylvania sports betting revenue stats below. 07%, which can go up to 15. How we rate Pennsylvania online gambling sites. Some states, such as California. High taxes and fees pennsylvania Has some of tHe HigHest taxes on land-based casinos in the world, and policymakers have elected to take a similar approach with online gambling. November 2018 marked the beginning of legalized sports betting in the state. Pennsylvania recorded $5. The new regular withholding rate. org or call - 18005224700. Interactive gaming authorization fee. 82%. Call the PA Gambling Addiction 24-hour hotline at 1-800-GAMBLER. The state imposes a 36% tax on PA sports betting revenue, the highest rate of any competitive commercial market in the US. 4 billion, about a 28% increase from last year. The winner’s responsibilityPennsylvania has its own income tax rate of 3. 07% against taxable income from gambling and. ”. 5%, which matches the state’s bifurcated tax rates of 8. For Tax Year 2021: 3. To use the calculator, you would select your state, indicate your tax filing status, add the amount of the other taxable income outside of gambling, enter the amount you won, and press calculate. New Jersey Income Tax withholding is based on the. In addition to cash, taxable gambling and winnings may include the value of non-cash prizes (vacations, automobiles, etc. The higher your taxable income, the higher your state tax rate. Video Gaming Terminal Revenue FY 2022/2023. 5% for all filers. 25 percent tax for problem gambling. MOBILE/ONLINE Allowed statewide. 2021-20 Fantasy Contests Revenues & Taxes Downloads. The amount withheld for state taxes varies from state to state. In Year 3, the cap is 15% and drops to 10% in Years 4 and 5. 8 percent on lottery winnings exceeding $0. Married Filing Jointly. 5% on retail betting and 14. It is an approximate calculation for many reasons (there are. 75% for retail sportsbooks and 14. The gaming law restricted the possibility of hosting sports gambling to Pennsylvania’s 12 casinos, any of whom could apply for a “sports wagering certificate” with Pennsylvania’s Gaming Control Board (GCB). A breakdown of tax rates for. Total Sportsbook Revenue: $1,387,039,943. Pennsylvania has a high licensing fee and a high tax rate for slot games. These cost $100 and are active for one year. The gambling tax rate is 3. Montana. S. Pennsylvania taxes nonresident beneficiaries on income from an estate or trust only to the extent the PA-source income to the beneficiaries is taxable to nonresidents. Single wins worth $1,200 or more (slots) or $5,000 (poker) are. The estimated amount, prior to any adjustments by the PA Department of Revenue is $2,052,630,568. $82,502 $73,122. 16 percent on non-peer-to-peer table games. July 2020 August 2020 September 2020 November 2020 December 2020 January 2021 February 2021 March 2021 May 2021 June 2021 FYTD Grand TotalThe breakthrough was , which was passed on Dec. The tax is required to be withheld at the Pennsylvania personal income tax rate in effect at the time the prize payment is made. 75% on adjusted gaming revenue, with operators permitted to set aside 20% of gross revenue as promotional. View all posts by Katie. Also, PA imposes a 36% tax rate on gross revenue for sports betting. Commercial gaming operators paid an estimated $3. Poker tournament winnings are more than $5,000. You would have to have an individual income above $100,525, including your winnings, to move into the 24% tax bracket. If you didn’t give the payer your tax ID number, the withholding rate is also 24%. 0307). These vary from 0% at the lowest to 8. com What’s the gambling tax rate in Pennsylvania? The Commonwealth of Pennsylvania treats gambling winnings as another form of income. By Andrew Staub (Staff Writer astaub@citizensvoice. Here’s a breakdown of the federal income tax for 2023, which you’ll file in 2024: Federal Income Tax Brackets for 2023. HARRISBURG, PA:The Pennsylvania Gaming Control Board reported today that the combined total revenue generated from all forms of gaming along with fantasy. The PA gambling tax rate is 3. Total adjusted revenue for September 2022 for video gaming terminals (VGTs) was $3,496,670 or 2. $726 million total bets in September, up around 13% from a. 3 million, down. Each must pay a licensing fee to operate along with a 54% tax rate on revenue. generally the ratio of the winnings to the wager. Stat. The Pennsylvania Senate passed a bill which would tax online gambling sites at a 54%. For single New Yorkers or those who are married but file separately for the 2021 tax year, the brackets look like this: $0 to $8,500: 4%. Regardless of whether you win $500,000 or $5000, the tax rate of 25% is the same because federal gambling tax isn’t progressive. An amended WV state return must be filed for tax years 2020-2022 using the appropriate year’s tax form. Pennsylvania tax on gambling winnings, pa gambling tax rate. How is the cash value calculated?Pennsylvania casinos are subject to the highest effective tax rate in the country. Total adjusted revenue for June 2022 for video gaming terminals (VGTs) was $3,506,902 or 6. These features are important because sports bettors have different styles, preferences, and needs. The Pennsylvania Lottery will automatically withhold PA personal income tax on prizes greater than $5,000 paid after July 12, 2016. 5 percent. Enter the total amount of PA tax withheld from federal Forms W-2G. Must be 21+ to participate. ’s 36 percent. The remainder of the money is also taxable. At the moment, all that revenue in Pennsylvania flows offshore to unlicensed operators. For Tax Year 2022: 3. PA Gaming Control Board Reports 7. 60 per pack of 20 cigarettes or little cigars ($0. 1403) • Economic Development Fund: six percent ( Pa. In addition, the c ombined tax revenue from these games during the fiscal year will top $2 billion for the first time. Both online and offline gambling games, except promotional lotteries, are subject to a gambling tax. Pennsylvania Gambling Tax Rate. The first PA gambling sites, all online casinos, open in July, generating $97,200,855 in tax by the end of the 2020 fiscal. Licensing and regulation are under the jurisdiction of the Pennsylvania Gambling Control Board . HARRISBURG, PA: The Pennsylvania. $11,701 to $13,900: 5. The proposed tax rate for esports sits at 36%, unless that changes throughout the legislation process. People in the lowest tax brackets pay 10%. Other states like Illinois, Pennsylvania and Tennessee are new to the business and could drop tax rates in the future. All earnings are subject to sports betting taxes. Where are enough of queries surrounding Pennsylvania taxes and gambling winnings.