Casino and slots winnings tax in Arizona
Arizona taxes slot machine winnings as ordinary income at a flat 2.5%.
Updated · 2026 tax rules · How we calculate
You keep
$4,275
Cash at payout
$5,000
Total tax
$725
Due when you file
$725
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $125
- Still to pay when you file
- $725
- You keep
- $4,275
$5,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
Casino and slots 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 12% bracket.
Arizona taxes gambling winnings as ordinary income.
Tax owed ($725) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $725 in federal and state tax: an effective rate of 14.5%.
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 slot machine winnings as ordinary income at a flat 2.5%.[1]Unverified
- Federal tax form
- Slot machine and bingo winnings of $2,000 or more are reported on a W-2G, without subtracting the wager. The threshold was $1,200 before 2026. Keno is also $2,000, after subtracting the wager on the winning game.[2]
- Federal withholding
- Slot machine, keno and bingo winnings are exempt from regular gambling withholding by statute, whatever the amount.[4]
- Arizona withholding
- No Arizona withholding requirement for slot machine winnings. Tax is due when you file.[5]
- 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.[6]Unverified
- Visitors
- Arizona taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[7]Unverified
- Where to play
- Arizona has casinos.[8]
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 |
| $5,000 | Yes | $0 | $600 | $125 | $4,275 |
| $10,000 | Yes | $0 | $1,550 | $250 | $8,200 |
| $100,000 | Yes | $0 | $22,114 | $2,500 | $75,386 |
Questions
- How much is Arizona tax on slot machine winnings?
- Arizona taxes slot machine winnings as ordinary income at a flat 2.5%.[1]Unverified
- Does Arizona withhold tax from slot machine winnings?
- Arizona has no withholding requirement for slot machine winnings. Tax is due when you file.[5]
- Do visitors pay Arizona tax on slot machine winnings?
- Arizona taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[7]Unverified
More for Arizona
All of Arizona's gambling tax rules · Casino and slots 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] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
- [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [5] A.R.S. 43-405 Extension of withholding to gambling winnings · checked September 22, 2026
- [6] Arizona Form 140 2025 Instructions (Itemized Deductions) · checked September 22, 2026
- [7] ADOR Private Taxpayer Ruling LR99-012 (1999) · checked September 22, 2026
- [8] American Gaming Association, State of the States 2025 · checked September 22, 2026