Poker tournaments winnings tax in Arkansas
Arkansas taxes poker tournament winnings as ordinary income at graduated rates from 2% to 3.7%.
On a $20,000 poker tournament win, nothing is withheld at payout. The tax comes to $4,490 ($3,750 federal and $740 Arkansas), $4,490 of it due when you file, so you keep $15,510. That's for a single filer with $60,000 of other income and no gambling losses.
Updated · 2026 tax rules · How we calculate
You keep
$15,510
Cash at payout
$20,000
Total tax
$4,490
Due when you file
$4,490
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $3,750
- State tax
- $740
- Still to pay when you file
- $4,490
- You keep
- $15,510
$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.
Arkansas taxes gambling winnings as ordinary income.
Tax owed ($4,490) 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 $4,490 in federal and state tax: an effective rate of 22.5%.
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
- Arkansas tax
- Arkansas taxes poker tournament winnings as ordinary income at graduated rates from 2% to 3.7%.[1]
- 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
- Arkansas withholding
- Arkansas withholds 3.7% whenever federal tax is withheld.[3]
- Gambling losses
- You can deduct losses only when you itemize on Form AR3 (line 27), up to the gambling winnings you report. Arkansas's own law allows losses to the extent of winnings, so the federal 90% limit doesn't apply.[5] How the federal 90% loss rule works
- Visitors
- Arkansas taxes nonresidents on poker tournament winnings won there, so visitors may need to file a nonresident return.[6]
- Where to play
- Arkansas 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 Arkansas.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $56 | $1,265 |
| $2,000 | Yes | $0 | $240 | $74 | $1,686 |
| $10,000 | Yes | $0 | $1,550 | $370 | $8,080 |
| $20,000 | Yes | $0 | $3,750 | $740 | $15,510 |
| $100,000 | Yes | $0 | $22,114 | $3,700 | $74,186 |
Records to keep for poker tournament winnings
Tournament winnings are measured net of the buy-in. Cash game winnings are taxable too but are not reported by the casino.
Losses only count if you can prove them. For poker tournament winnings, the IRS suggests keeping:[9]
- The number of the table you played at
- Casino credit card data showing whether credit was issued in the pit or at the cashier's cage
All of this goes alongside the diary the IRS expects for every kind of gambling: keeping gambling records the IRS will accept.
Questions
- How much is Arkansas tax on poker tournament winnings?
- Arkansas taxes poker tournament winnings as ordinary income at graduated rates from 2% to 3.7%.[1]
- Does Arkansas withhold tax from poker tournament winnings?
- Arkansas withholds 3.7% whenever federal tax is withheld.[3]
- Do visitors pay Arkansas tax on poker tournament winnings?
- Arkansas taxes nonresidents on poker tournament winnings won there, so visitors may need to file a nonresident return.[6]
More for Arkansas
All of Arkansas's gambling tax rules · Poker tournaments in every state
Sources
- [1] Arkansas Bureau of Legislative Research, SB1 fiscal impact (2026 First Extraordinary Session) · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] A.C.A. 26-51-920 Casinos - Withholding and reporting · checked September 22, 2026
- [4] Arkansas Scholarship Lottery - Claim Your Prize · checked September 22, 2026
- [5] Arkansas Act 155 of 2017, § 21 (amending Ark. Code § 26-51-424) · checked October 2, 2026
- [6] Arkansas DFA, 2025 AR1000F/AR1000NR Instructions (Form AR3) · checked October 2, 2026
- [7] Arkansas DFA, Subject 208: Gambling Income and Expenses · checked October 2, 2026
- [8] American Gaming Association, State of the States 2025 · checked September 22, 2026
- [9] IRS, Publication 529, Miscellaneous Deductions · checked September 28, 2026