Gambling winnings tax in Oregon

Oregon allows gambling losses only as an itemized deduction on the state return, whether or not you itemize federally. Take its standard deduction and it taxes your gross winnings. Whether only 90 percent of your losses count from 2026 is not settled.

Checked against Oregon’s own sources on 2026-09-25.

In short

A win that takes your federal AGI over $100,000 single or separate, or $200,000 joint, head of household or surviving spouse, takes away all of Oregon’s personal exemption credit. The credit is $260 a person for 2026.13, 12
Oregon lets you subtract federal income tax up to a limit. The limit falls as your federal adjusted gross income goes up from $125,000, or from $250,000 on a joint, head of household or surviving spouse return.
Oregon does not tax Oregon Lottery winnings of $600 or less from a single play or ticket. If you subtract them, you must add back the matching share of your gambling loss deduction.7

How Oregon treats gambling losses

Oregon does not tie the deduction to your federal itemizing choice. You can itemize on the Oregon return even if you take the federal standard deduction, but the losses count only if you do, in place of Oregon's standard deduction.

The two examples below are the same numbers the calculator uses, worked at Oregon rates.

Two examples, worked at 2026 Oregon rates

A single filer with $60,000 of other income who takes the standard deduction on everything except gambling losses.

A losing year

You win $50,000 and lose $52,000, so you finish down $2,000.

Federal: $3,596
Oregon: $479
Total: $4,075

You finished the year down and still owe tax.

Federally you itemize, so your losses offset your winnings, but the 2026 rule caps that deduction at 90 percent and leaves $3,200 taxable. Oregon lets you deduct gambling losses as an itemized deduction on the state return, whether or not you itemize federally. Your Oregon income, after the larger of the standard deduction and your itemized deductions, and after the federal income tax it lets you deduct, up to a limit that falls as income rises, goes from $52,080 without the win to $54,584 with it. The extra $2,504 is taxed at 8.75 percent, plus $260 because the win takes away your personal exemption credit, which comes to $479.

A winning year

You win $50,000 and lose $10,000, so you finish up $40,000.

Federal: $10,350
Oregon: $3,775
Total: $14,125

Federally you take the $16,100 standard deduction, which is worth more than itemizing, so your gambling losses do not reduce your federal tax at all. Oregon lets you deduct gambling losses as an itemized deduction on the state return, whether or not you itemize federally. Your Oregon income, after the larger of the standard deduction and your itemized deductions, and after the federal income tax it lets you deduct, up to a limit that falls as income rises, goes from $52,080 without the win to $92,250 with it. The extra $40,170 is taxed at 8.75 percent, plus $260 because the win takes away your personal exemption credit, which comes to $3,775.

Oregon income tax rates, 2026

5, 6

Single filer thresholds. Married filing jointly and head of household use different bands. Married filing separately uses the single bands.

Taxable income	Rate
$0 to $4,550	4.75 percent
$4,550 to $11,400	6.75 percent
$11,400 to $125,000	8.75 percent
$125,000 and above	9.9 percent

The calculator also applies what this table leaves out: a deduction for the federal income tax, up to a limit that falls as income rises, taken before the table, the federal overall limit on itemized deductions at the top federal bracket, taken before the table and a personal exemption credit off the tax, which ends at higher incomes.

Withholding on winnings

Oregon withholds 8 percent. The rule in the state's sources:

the state lottery: $1,500 or more (prizes paid to an individual).

These sources give no rule for other kinds of bet, so do not assume tax was withheld on one.

Withholding is a credit against the bill, not the bill itself. It does not settle what you owe.

Local tax

The Portland area adds a large local layer. Metro Supportive Housing Services is 1 percent above $125,000 single or $200,000 joint for 2021 through 2025, rising to $128,000 and $205,000 for 2026. This page uses the 2026 tables, so use the 2026 figures. Multnomah County Preschool for All is 1.5 percent above $125,000 single or $200,000 joint, plus another 1.5 percent above $250,000 or $400,000. A high-income Multnomah resident can face up to 4 percent local on top of 9.9 percent state. Both are measured on Oregon taxable income, which already contains gambling winnings.

The federal 90 percent loss limit in Oregon

8, 9, 10, 15

From tax year 2026 the federal deduction for gambling losses is cut to 90 percent of what you lost, and never more than what you won. Public Law 119-21 did it, at section 70114(a), by rewriting 26 U.S.C. 165(d).

Oregon has not said whether the federal 90 percent limit applies. Its own law measures the state deduction by the federal figure, so the limit can arrive without Oregon doing anything. Oregon follows the federal code as it stood on 2025-12-31.

Our estimate assumes the limit applies, which gives the higher tax. The calculator also shows the tax if the limit does not apply. We would rather tell you the number could be lower than let you plan around one that turns out to be too low.

If you do not live in Oregon

A taxable Oregon State Lottery prize is Oregon source income for a nonresident, including a multistate lottery prize where the ticket was sold in Oregon.

The calculator works the bill for somebody who lives in Oregon. It does not apportion income between states, so a nonresident return is not what the figure above describes.

More about Oregon

The personal exemption credit

Oregon’s personal exemption credit is $260 a person for 2026. You lose all of it once your federal AGI is more than $100,000 single or separate, or $200,000 joint, head of household or surviving spouse. A win that takes you over the line takes the whole credit away.13, 12

Each further dependent adds $260 that you lose at the same line. The 2025 credit is $256 (Form OR-40 instructions, 2025).

Subtracting federal income tax

Oregon lets you subtract federal income tax, up to $8,500 for 2025 and $8,750 for 2026. The limit falls by a fifth at $125,000 of federal adjusted gross income and at each $5,000 after that, and is nothing from $145,000. Joint returns, head of household and surviving spouse use $250,000 and steps of $10,000. ORS 316.695(3) sets the limit and names the joint line. The dollar figures and the head of household line are from the Department of Revenue: the 2025 Form OR-40 instructions and the 2026 Publication OR-ESTIMATE.

If you file separately, you get half the limit, unless you live apart under IRC 7703(b) (ORS 316.695(5)).

Losses and the standard deduction

You claim gambling losses on Schedule OR-A line 22, up to your taxable winnings, with no dollar cap. The Oregon standard deduction for 2026 is $2,900, $4,650 head of household or $5,800 joint, plus $1,200 for each person 65 or older single or head of household, or $1,000 a person on other returns.7, 4, 1

From 2026 Oregon applies the federal overall limit on itemized deductions to your Oregon itemized deductions. The law does not say whether it reaches you if you do not itemize federally.14

If you file married filing separately and your spouse itemizes, you get no Oregon standard deduction.7, 4

Tax rates for 2026

For 2026 only the two lowest thresholds moved. The rates and the top thresholds did not change:5, 6

Filing status	Lowest threshold	Next threshold
Single	$4,400 to $4,550	$11,100 to $11,400
Joint	$8,800 to $9,100	$22,200 to $22,800

The 2026 rate table comes from Publication OR-ESTIMATE, which Oregon labels as figures for estimating 2026 tax. Its rates and top thresholds match the final 2025 charts.5, 6

Withholding

Oregon’s 8 percent withholding covers Oregon State Lottery prizes of $1,500 or more paid to individuals. No department guidance could be found that applies it to Oregon Lottery sports betting.

Small Oregon Lottery wins

Oregon does not tax Oregon Lottery winnings of $600 or less from a single play or ticket. If you subtract those winnings, you must add back the matching share of your gambling loss deduction.7

About this estimate

If you are 65 or older, the calculator adds $1,200 to the Oregon standard deduction, or $1,000 a person on a joint or separate return. It leaves out the medical subtraction from age 66.

If you file married filing separately and your spouse itemizes, the calculator still gives you the $2,900 standard deduction.

For the personal exemption credit, the calculator counts one person single or separate, two joint, and two head of household. For 2025 it uses $260, not the 2025 credit of $256.

Oregon has not published its 2026 table for the federal income tax subtraction limit, so the calculator works the 2026 steps below $8,750 from the statute. For 2025 the calculator uses the 2026 limit.

The calculator does not include the exception for separate filers who live apart.

If you do not itemize federally, the calculator still applies the federal overall limit to your Oregon itemized deductions.

Sources

Every figure above traces to a primary source: a statute, an administrative code, a state agency page, or official form instructions.

1. ORS 316.695(7): an additional standard deduction of $1,000 for a taxpayer, and a spouse, 65 or older, or $1,200 for one who is not married, and 316.693: the medical subtraction at 66 (checked 2026-10-12)
2. ORS 316.695(3), the limit on the federal income tax subtraction and its phase-out by federal adjusted gross income (checked 2026-09-25)
3. Publication OR-ESTIMATE (2026): federal tax subtraction of $0 to $8,750, and the estimated tax worksheet line 9 (checked 2026-09-25)
4. Publication OR-ESTIMATE (2026), standard deduction of $2,900, $4,650 and $5,800 (checked 2026-09-25)
5. Oregon DOR 2025 tax rate charts (checked 2026-09-11)
6. Publication OR-ESTIMATE (2026), rate charts S and J for estimating 2026 tax (checked 2026-09-19)
7. Schedule OR-A instructions (2025), gambling losses up to taxable winnings (checked 2026-09-11)
8. ORS chapter 316, sections 316.012 conformity and 316.194 lottery withholding (checked 2026-09-11)
9. SB 1507 (2026), Oregon Laws 2026 chapter 142, sections 38 and 48(2): ORS 316.012 refers to the Code as amended and in effect on December 31, 2025, for tax years from 2026, and the effective and applicable dates in federal law enacted before January 1, 2026 apply for Oregon in the same manner as under the Code (checked 2026-10-01)
10. ORS 316.695(1)(d): Oregon itemized deductions are "the taxpayer’s itemized deductions as defined in section 63(d) of the Internal Revenue Code" (checked 2026-10-01)
11. Portland Revenue Division, Metro SHS and Multnomah County PFA personal taxes (checked 2026-09-11)
12. Publication OR-ESTIMATE 2026, personal exemption credit and its income limit (checked 2026-09-25)
13. ORS 316.085(5), no personal exemption credit above the federal AGI limit (checked 2026-09-25)
14. ORS 316.695(1)(d): Oregon itemized deductions are those defined in section 63(d) "(reduced, if applicable, as described under section 68 of the Internal Revenue Code)" (checked 2026-10-01)

The federal rule, for the parts of this page that rest on it

15. Public Law 119-21 section 70114(a), which rewrote 26 U.S.C. 165(d) on wagering losses from tax year 2026 and sets out its text (checked 2026-10-18)