Table games winnings tax in Iowa
Iowa taxes table game winnings as ordinary income at a flat 3.8%.
Updated · 2026 tax rules · How we calculate
You keep
$4,210
Cash at payout
$5,000
Total tax
$790
Due when you file
$790
- Form W-2G
- No
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $190
- Still to pay when you file
- $790
- You keep
- $4,210
Table games winnings are not reported on a W-2G. They are still taxable, and you report them yourself.
Table games winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 12% bracket.
Iowa taxes gambling winnings as ordinary income.
Tax owed ($790) 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 $790 in federal and state tax: an effective rate of 15.8%.
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
- Iowa tax
- Iowa taxes table game winnings as ordinary income at a flat 3.8%.[1]
- Federal tax form
- Casinos generally don't issue a W-2G for blackjack, craps, roulette or baccarat winnings. They are still fully taxable, and you report them yourself.[2]Unverified
- Federal withholding
- Table game winnings aren't subject to regular gambling withholding in practice.[2]Unverified
- Iowa withholding
- No Iowa withholding requirement for table game winnings. Tax is due when you file.[3]
- Gambling losses
- Iowa starts from federal taxable income, so gambling losses lower your Iowa tax only if you itemize them federally, with the federal 90% limit.[4]
- Visitors
- Iowa taxes nonresidents on table game winnings won there, so visitors may need to file a nonresident return.[5]
- Where to play
- Iowa 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 Iowa.
| Won | Form | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $57 | $1,263 |
| $2,000 | No | $0 | $240 | $76 | $1,684 |
| $5,000 | No | $0 | $600 | $190 | $4,210 |
| $10,000 | No | $0 | $1,550 | $380 | $8,070 |
| $100,000 | No | $0 | $22,114 | $3,800 | $74,086 |
Questions
- How much is Iowa tax on table game winnings?
- Iowa taxes table game winnings as ordinary income at a flat 3.8%.[1]
- Does Iowa withhold tax from table game winnings?
- Iowa has no withholding requirement for table game winnings. Tax is due when you file.[3]
- Do visitors pay Iowa tax on table game winnings?
- Iowa taxes nonresidents on table game winnings won there, so visitors may need to file a nonresident return.[5]
More for Iowa
All of Iowa's gambling tax rules · Table games 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] Iowa DOR: Iowa Withholding Tax Information · checked September 22, 2026
- [4] Iowa DOR IA 1040 Expanded Instructions, Intro 4: Conformity with the Internal Revenue Code · checked September 22, 2026
- [5] Iowa DOR: Iowa Tax On Gambling · checked September 22, 2026
- [6] Covers, Legal sports betting in the US · checked September 22, 2026