Poker tournaments winnings tax in Indiana
Indiana taxes poker tournament winnings as ordinary income at a flat 2.95%.
Updated · 2026 tax rules · How we calculate
You keep
$15,660
Cash at payout
$20,000
Total tax
$4,340
Due when you file
$4,340
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $3,750
- State tax
- $590
- Still to pay when you file
- $4,340
- You keep
- $15,660
$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.
Indiana taxes gambling winnings as ordinary income.
Tax owed ($4,340) 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 $4,340 in federal and state tax: an effective rate of 21.7%.
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
- Indiana tax
- Indiana taxes poker tournament winnings as ordinary income at a flat 2.95%.[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
- Indiana withholding
- Indiana withholds 2.95% whenever federal tax is withheld.[3]Unverified
- Gambling losses
- Indiana has no deduction for gambling losses, even if you claim them on your federal return.[4]
- Visitors
- Indiana taxes nonresidents on poker tournament winnings won there, so visitors may need to file a nonresident return.[5]
- Where to play
- Indiana 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 Indiana.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $44 | $1,276 |
| $2,000 | Yes | $0 | $240 | $59 | $1,701 |
| $10,000 | Yes | $0 | $1,550 | $295 | $8,155 |
| $20,000 | Yes | $0 | $3,750 | $590 | $15,660 |
| $100,000 | Yes | $0 | $22,114 | $2,950 | $74,936 |
Questions
- How much is Indiana tax on poker tournament winnings?
- Indiana taxes poker tournament winnings as ordinary income at a flat 2.95%.[1]
- Does Indiana withhold tax from poker tournament winnings?
- Indiana withholds 2.95% whenever federal tax is withheld.[3]Unverified
- Do visitors pay Indiana tax on poker tournament winnings?
- Indiana taxes nonresidents on poker tournament winnings won there, so visitors may need to file a nonresident return.[5]
More for Indiana
All of Indiana's gambling tax rules · Poker tournaments in every state
Sources
- [1] Indiana DOR Departmental Notice #1 (2026) · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] Indiana DOR Departmental Notice #16 (March 2026): Withholding on winnings from riverboat gaming · checked September 22, 2026
- [4] Indiana DOR Individual Income Tax FAQs · checked September 22, 2026
- [5] Indiana IT-40PNR Booklet 2025 · checked September 22, 2026
- [6] Covers, Legal sports betting in the US · checked September 22, 2026