Horse racing winnings tax in Kansas
Kansas taxes horse racing winnings as ordinary income at graduated rates from 5.2% to 5.58%.
Updated · 2026 tax rules · How we calculate
You keep
$6,444
Cash at payout
$5,680
Total tax
$1,556
Over-withheld
$764
- Form W-2G
- Yes
- Federal withholding at payout
- $1,920
- Federal tax on the winnings
- $1,110
- State tax
- $446
- Kansas withholding at payout
- $400
- Over-withheld
- $764
- You keep
- $6,444
$8,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
Kansas taxes gambling winnings as ordinary income.
Kansas requires the payer to hold back 5% for state tax.
More was withheld than these winnings add to your tax. The difference reduces what you owe on the rest of your return, or comes back as a refund.
$8,000 minus $1,556 in federal and state tax: an effective rate of 19.5%.
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
- Kansas tax
- Kansas taxes horse racing winnings as ordinary income at graduated rates from 5.2% to 5.58%.[1]
- Federal tax form
- Horse racing (pari-mutuel) winnings are reported on a W-2G when they are $2,000 or more (after subtracting the wager) and at least 300 times the wager. The threshold was $600 before 2026.[2]
- Federal withholding
- 24% is withheld from pari-mutuel winnings of more than $5,000, but only when the win is also at least 300 times the wager.[2]
- Kansas withholding
- Kansas withholds 5% whenever federal tax is withheld.[5]Unverified
- Gambling losses
- Kansas itemized deductions cover only medical expenses, property taxes, mortgage interest and charitable gifts, so gambling losses get no Kansas deduction.[6]Unverified
- Visitors
- Kansas taxes nonresidents on horse racing winnings won there, so visitors may need to file a nonresident return.[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 Kansas.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $84 | $1,236 |
| $2,000 | Yes | $0 | $240 | $112 | $1,648 |
| $8,000 | Yes | $2,320 | $1,110 | $446 | $6,444 |
| $10,000 | Yes | $2,900 | $1,550 | $558 | $7,892 |
| $100,000 | Yes | $29,000 | $22,114 | $5,580 | $72,306 |
Assumes a $2 bet amount, so the 300x test is met at every amount shown.
Questions
- How much is Kansas tax on horse racing winnings?
- Kansas taxes horse racing winnings as ordinary income at graduated rates from 5.2% to 5.58%.[1]
- Does Kansas withhold tax from horse racing winnings?
- Kansas withholds 5% whenever federal tax is withheld.[5]Unverified
- Do visitors pay Kansas tax on horse racing winnings?
- Kansas taxes nonresidents on horse racing winnings won there, so visitors may need to file a nonresident return.[6]
More for Kansas
All of Kansas's gambling tax rules · Horse racing 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] Kansas KW-100 Withholding Tax Guide · checked September 22, 2026
- [6] Kansas 2025 Individual Income Tax booklet (K-40 instructions) · checked September 22, 2026