Iowa Will Begin Withholding State Taxes on Sports Betting Winnings
Iowa will change how it collects income tax on sports betting winnings beginning in 2026, shifting part of the tax obligation from annual filing to the payout stage for certain qualifying wins. The update follows the passage of Senate File 605, which Governor Kim Reynolds signed into law in 2025. The new requirements take effect on January 1, 2026. Under the law, sportsbooks operating in Iowa must withhold state income tax from sports wagering winnings when federal income tax withholding […]
Iowa will change how it collects income tax on sports betting winnings beginning in 2026, shifting part of the tax obligation from annual filing to the payout stage for certain qualifying wins. The update follows the passage of Senate File 605, which Governor Kim Reynolds signed into law in 2025. The new requirements take effect on January 1, 2026. Under the law, sportsbooks operating in Iowa must withhold state income tax from sports wagering winnings when federal income tax withholding […]
