Table games winnings tax in Kentucky
Kentucky taxes table game winnings as ordinary income at a flat 3.5%.
Updated · 2026 tax rules · How we calculate
You keep
$4,225
Cash at payout
$5,000
Total tax
$775
Due when you file
$775
- Form W-2G
- No
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $175
- Still to pay when you file
- $775
- You keep
- $4,225
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.
Kentucky taxes gambling winnings as ordinary income.
Tax owed ($775) 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 $775 in federal and state tax: an effective rate of 15.5%.
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
- Kentucky tax
- Kentucky taxes table game winnings as ordinary income at a flat 3.5%.[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
- Kentucky withholding
- No Kentucky withholding requirement for table game winnings. Tax is due when you file.[3]Unverified
- Gambling losses
- If you itemize, you can deduct wagering losses allowed under federal law, including the 90% limit, even though Kentucky disallows most other itemized deductions.[4]
- Visitors
- Kentucky taxes nonresidents on table game winnings won there, so visitors may need to file a nonresident return.[5]Unverified
- Where to play
- Kentucky has no casinos. Winnings from a casino trip to another state are still taxable here.[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 Kentucky.
| Won | Form | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $53 | $1,268 |
| $2,000 | No | $0 | $240 | $70 | $1,690 |
| $5,000 | No | $0 | $600 | $175 | $4,225 |
| $10,000 | No | $0 | $1,550 | $350 | $8,100 |
| $100,000 | No | $0 | $22,114 | $3,500 | $74,386 |
Questions
- How much is Kentucky tax on table game winnings?
- Kentucky taxes table game winnings as ordinary income at a flat 3.5%.[1]
- Does Kentucky withhold tax from table game winnings?
- Kentucky has no withholding requirement for table game winnings. Tax is due when you file.[3]Unverified
- Do visitors pay Kentucky tax on table game winnings?
- Kentucky taxes nonresidents on table game winnings won there, so visitors may need to file a nonresident return.[5]Unverified
More for Kentucky
All of Kentucky'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] KRS 154A.110 Prizes taxable -- Withholdings from prize · checked September 22, 2026
- [4] KRS 141.019 Calculation of adjusted gross income and net income (effective July 15, 2026) · checked September 22, 2026
- [5] KRS 141.020 Levy of income tax on individuals · checked September 22, 2026
- [6] Covers, Legal sports betting in the US · checked September 22, 2026