Poker tournaments winnings tax in Arizona
Arizona taxes poker tournament winnings as ordinary income at a flat 2.5%.
Updated · 2026 tax rules · How we calculate
You keep
$15,750
Cash at payout
$20,000
Total tax
$4,250
Due when you file
$4,250
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $3,750
- State tax
- $500
- Still to pay when you file
- $4,250
- You keep
- $15,750
$20,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
Poker tournaments winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file. If you don't give the payer your Social Security number, 24% backup withholding applies.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
Arizona taxes gambling winnings as ordinary income.
Tax owed ($4,250) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$20,000 minus $4,250 in federal and state tax: an effective rate of 21.3%.
An estimate for 2026, not tax advice. It treats this win as your only gambling income for the year and leaves out local income taxes. Nothing you enter leaves your browser.
The rules
- Arizona tax
- Arizona taxes poker tournament winnings as ordinary income at a flat 2.5%.[1]Unverified
- Federal tax form
- Poker tournament winnings of $2,000 or more, net of the buy-in, are reported on a W-2G. No 300x test applies.[2]Unverified
- Federal withholding
- Poker tournament winnings aren't subject to regular withholding if the payer files a W-2G and gives you a copy.[2]Unverified
- Arizona withholding
- No Arizona withholding requirement for poker tournament winnings. Tax is due when you file.[3]
- Gambling losses
- You can deduct losses only as an Arizona itemized deduction, up to your winnings. Arizona lets you itemize even if you took the federal standard deduction.[4]Unverified
- Visitors
- Arizona taxes nonresidents on poker tournament winnings won there, so visitors may need to file a nonresident return.[5]Unverified
- Where to play
- Arizona has casinos.[6]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Arizona.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $38 | $1,283 |
| $2,000 | Yes | $0 | $240 | $50 | $1,710 |
| $10,000 | Yes | $0 | $1,550 | $250 | $8,200 |
| $20,000 | Yes | $0 | $3,750 | $500 | $15,750 |
| $100,000 | Yes | $0 | $22,114 | $2,500 | $75,386 |
Questions
- How much is Arizona tax on poker tournament winnings?
- Arizona taxes poker tournament winnings as ordinary income at a flat 2.5%.[1]Unverified
- Does Arizona withhold tax from poker tournament winnings?
- Arizona has no withholding requirement for poker tournament winnings. Tax is due when you file.[3]
- Do visitors pay Arizona tax on poker tournament winnings?
- Arizona taxes nonresidents on poker tournament winnings won there, so visitors may need to file a nonresident return.[5]Unverified
More for Arizona
All of Arizona's gambling tax rules · Poker tournaments in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] A.R.S. 43-405 Extension of withholding to gambling winnings · checked September 22, 2026
- [4] Arizona Form 140 2025 Instructions (Itemized Deductions) · checked September 22, 2026
- [5] ADOR Private Taxpayer Ruling LR99-012 (1999) · checked September 22, 2026
- [6] American Gaming Association, State of the States 2025 · checked September 22, 2026