Net Profit Calculator After Fees and Tax
See what actually reaches your account once platform fees and tax come out of a winning year.
Your winnings before anything is taken out.
Use the market fees calculator to work this out.
Your marginal rate if treated as ordinary income.
This is an estimate, not tax advice. The IRS has issued no guidance specific to prediction markets, and the treatment you use — ordinary income, gambling, or Section 1256 — changes the answer materially. Losses are assumed not to offset the gain here.
How it works
Gross winnings are the number people quote. Take-home is the number that matters, and the gap between them is wider than most traders expect once fees and tax are both accounted for.
Tax is the larger of the two and the less settled. The IRS has published no guidance specific to prediction markets, which leaves three treatments in common use: ordinary income, which is the conservative choice most filers take; gambling, which is unfavourable because losses are capped; and Section 1256, which is aggressive but arguable for CFTC-regulated contracts. Our prediction market tax guide works through each.
Reporting differs by venue too. Kalshi issues a 1099-MISC; Polymarket issues nothing anywhere. The absence of a form is not the absence of an obligation.
Frequently asked questions
Do you pay tax on prediction market winnings?
Yes, whether or not the venue sends you a form. Kalshi issues a 1099-MISC and Polymarket issues nothing — see the tax guide.
Can I deduct trading fees from my taxable profit?
Generally yes, as a cost of the trade rather than a separate deduction — which is how this calculator handles them. Confirm with a professional, since it depends on how you report the activity.
What tax rate should I use?
Your marginal federal rate if you report it as ordinary income, plus state where it applies. The single rate here is an approximation, not a filing position.
Other calculators
For live prices instead of hypotheticals, see the Polymarket vs Kalshi arbitrage scanner, or compare the venues in our head-to-head breakdown.
