Casino and slots winnings tax in Connecticut
Connecticut taxes slot machine winnings as ordinary income at graduated rates from 2% to 6.99%.
Updated · 2026 tax rules · How we calculate
You keep
$4,175
Cash at payout
$5,000
Total tax
$825
Due when you file
$825
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $225
- Still to pay when you file
- $825
- You keep
- $4,175
$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.
Connecticut taxes gambling winnings as ordinary income.
Tax owed ($825) 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 $825 in federal and state tax: an effective rate of 16.5%.
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
- Connecticut tax
- Connecticut taxes slot machine winnings as ordinary income at graduated rates from 2% to 6.99%.[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]
- Connecticut withholding
- No Connecticut withholding requirement for slot machine winnings. Tax is due when you file.[5]Unverified
- Gambling losses
- No. Connecticut allows no deduction for gambling losses, even when you deduct them federally.[6]
- Visitors
- Connecticut does not tax nonresidents on slot machine winnings. Visitors owe tax to their home state instead.[7]
- Where to play
- Connecticut has casinos, and online casino gaming is legal.[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 Connecticut.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $68 | $1,253 |
| $2,000 | Yes | $0 | $240 | $90 | $1,670 |
| $5,000 | Yes | $0 | $600 | $225 | $4,175 |
| $10,000 | Yes | $0 | $1,550 | $500 | $7,950 |
| $100,000 | Yes | $0 | $22,114 | $5,675 | $72,211 |
Questions
- How much is Connecticut tax on slot machine winnings?
- Connecticut taxes slot machine winnings as ordinary income at graduated rates from 2% to 6.99%.[1]
- Does Connecticut withhold tax from slot machine winnings?
- Connecticut has no withholding requirement for slot machine winnings. Tax is due when you file.[5]Unverified
- Do visitors pay Connecticut tax on slot machine winnings?
- Connecticut does not tax nonresidents on slot machine winnings. Visitors owe tax to their home state instead.[7]
More for Connecticut
All of Connecticut'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] CT DRS IP 2015(23), Income Tax Treatment of State Lottery Winnings · checked September 22, 2026
- [6] CT DRS IP 2011(27), Income Tax Treatment of Gambling Winnings Other Than State Lottery Winnings · checked September 22, 2026
- [7] CT DRS - Nonresident and Part-Year Resident Tax Information · checked September 22, 2026
- [8] American Gaming Association, State of the States 2025 · checked September 22, 2026