Casino and slots winnings tax in Colorado
Colorado taxes slot machine winnings as ordinary income at a flat 4.4%.
Updated · 2026 tax rules · How we calculate
You keep
$4,180
Cash at payout
$5,000
Total tax
$820
Due when you file
$820
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $220
- Still to pay when you file
- $820
- You keep
- $4,180
$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.
Colorado taxes gambling winnings as ordinary income.
Tax owed ($820) 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 $820 in federal and state tax: an effective rate of 16.4%.
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
- Colorado tax
- Colorado taxes slot machine winnings as ordinary income at a flat 4.4%.[1]
- 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]
- Colorado withholding
- Colorado withholds 4% whenever federal tax is withheld.[5]
- Gambling losses
- Losses reduce Colorado tax only through your federal itemized deductions. Colorado has no separate gambling-loss deduction.[6]
- Visitors
- Colorado taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[7]
- Where to play
- Colorado 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 Colorado.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $66 | $1,254 |
| $2,000 | Yes | $0 | $240 | $88 | $1,672 |
| $5,000 | Yes | $0 | $600 | $220 | $4,180 |
| $10,000 | Yes | $0 | $1,550 | $440 | $8,010 |
| $100,000 | Yes | $0 | $22,114 | $4,400 | $73,486 |
Questions
- How much is Colorado tax on slot machine winnings?
- Colorado taxes slot machine winnings as ordinary income at a flat 4.4%.[1]
- Does Colorado withhold tax from slot machine winnings?
- Colorado withholds 4% whenever federal tax is withheld.[5]
- Do visitors pay Colorado tax on slot machine winnings?
- Colorado taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[7]
More for Colorado
All of Colorado'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] Colorado DOR Withholding Tax Topics: Gambling Winnings · checked September 22, 2026
- [6] Colorado DOR Individual Income Tax Guide · checked September 22, 2026
- [7] Colorado DOR Income Tax Topics: Part-Year Residents & Nonresidents · checked September 22, 2026
- [8] American Gaming Association, State of the States 2025 · checked September 22, 2026