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SF605 • 2026

A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions. (Formerly SSB 1152 .) Effective date: 01/01/2026.

A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions. (Formerly SSB 1152 .) Effective date: 01/01/2026.

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
COMMITTEE ON WAYS AND MEANS
Last action
2025-03-28
Official status
Signed by Governor . S.J. 668 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions. (Formerly SSB 1152 .) Effective date: 01/01/2026.

A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions.

What This Bill Does

  • A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions.
  • (Formerly SSB 1152 .) Effective date: 01/01/2026.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-03-28 Iowa Legislature

    Signed by Governor . S.J. 668 .

  2. 2025-03-28 Iowa Legislature

    Reported correctly enrolled, signed by President and Speaker, and sent to Governor. S.J. 667 .

  3. 2025-03-20 Iowa Legislature

    Message from House. S.J. 602 .

  4. 2025-03-19 Iowa Legislature

    Immediate message. H.J. 748 .

  5. 2025-03-19 Iowa Legislature

    Passed House , yeas 96, nays 0. H.J. 727 .

  6. 2025-03-19 Iowa Legislature

    Substituted for HF 794 . H.J. 726 .

  7. 2025-03-18 Iowa Legislature

    Placed on calendar under unfinished business. H.J. 682 .

  8. 2025-03-18 Iowa Legislature

    Read first time, passed on file. H.J. 681 .

  9. 2025-03-18 Iowa Legislature

    Message from Senate. H.J. 680 .

  10. 2025-03-18 Iowa Legislature

    Immediate message. S.J. 559 .

  11. 2025-03-18 Iowa Legislature

    Passed Senate , yeas 48, nays 0. S.J. 556 .

  12. 2025-03-12 Iowa Legislature

    Committee report, approving bill. S.J. 508 .

  13. 2025-03-12 Iowa Legislature

    Introduced, placed on Ways and Means calendar. S.J. 506 .

Official Summary Text

A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions. (Formerly SSB 1152 .) Effective date: 01/01/2026.

Current Bill Text

Read the full stored bill text 
STATE OF IOWA
KIM REYNOLDS
GOVERNOR
March 28, 2025
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
Senate File 605, an Act relating to state income tax withholdings on winnings from sports
wagering, and including effective date provisions.
The above Senate File is hereby approved on this date.
Sincerely,
Kim PSeynolds
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 FAX 515.725.3527 WWW.GOVERNOR.IOWA.GOV
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Senate File 605
AN ACT
RELATING TO STATE INCOME TAX WITHHOLDINGS ON WINNINGS FROM
SPORTS WAGERING, AND INCLUDING EFFECTIVE DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1, Section 99F.18, Code 2025, is amended to read as
follows:
99F.18 Tax on winnings.
1. All winnings derived from slot machines operated
pursuant to this chapter are Iowa earned income and are subject
to state and federal income tax laws. An amount deducted from
winnings for payment of the state tax, pursuant to section
422.16, subsection 2, shall be remitted to the department of
revenue on behalf of the winner.
2. All winnings from sports wagering authorized under this
chapter are Iowa earned income and are subject to state and
federal income tax laws. An amount deducted from winnings for
payment of state tax pursuant to section 422.16, subsection 2,
shall be remitted to the department of revenue on behalf of the
winner.
Sec. 2. Section 422.16, subsection 2, paragraph d. Code
2025, is amended to read as follows:
d. For the purposes of this subsection, state income tax
shall be withheld on winnings in excess of six hundred dollars
derived from gambling activities authorized under chapter
99B or 99G. State income tax shall be withheld on winnings
in excess of one thousand dollars from gambling activities
Senate Pile 605, p. 2
authorized under chapter 99D. State income tax shall be
withheld on winnings in excess of one thousand two hundred
dollars derived from slot machines authorized under chapter
99F. State income tax shall be withheld on winnings from
sports wagering authorized under chapter 99F whenever federal
income tax is required to be withheld from the same winnings in
accordance with the Internal Revenue Code.
Sec. 3. EFFECTIVE DATE. This Act takes effect January 1,
2026.
AMY SINCL^R PAT' GRASSL]
President of the Senate Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate Pile 605, Ninety-first General Assembly.
Approved , 2025
W. CHARLES SMITHSON
Secretanw o^Hhe Senate
KIM
Governor