Tax rates in the state, as they do in many other states, vary based on the amount of taxable income. Please consult your tax professional for final tax determinations. Disclosure: BetAlabama does not act as a Certified Public Accountant, nor are these calculations expected to serve as final for tax preparation. In this article, BetAlabama will cover how to calculate taxes on winnings. There are four local jurisdictions that will collect income tax at the local level. As with any potential revenue stream, individuals will be expected to pay both Federal and State income tax on winnings. The state is expected to draw as much as $700 million in new taxes on gambling in Alabama. The gambling bill (SB293) is expected to clear the legislature and be sent to the general public for statewide approval in the November 2022 general election ballot number is still to-be-determined. A constitutional amendment sponsored by State Senator Greg Albritton (R-Baldwin County) would establish the new Alabama Education Lottery and Gambling Commission (ELGC) along with an Alabama Educational Lottery, casino and sports betting. The State is still in the process of approving online and retail sports betting in Alabama within it’s borders. Alabama Gambling Tax Calculator: How Your Winnings Will Be TaxedĪlabama Gambling Tax Calculator: How Your Winnings Will Be Taxed.Alabama Sports Betting 2023: When Will Alabama Sportsbooks Launch?.
