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WinningsTax

Mississippi gambling winnings tax calculator

Mississippi taxes gambling winnings as ordinary income at graduated rates from 0% to 4%.

Updated · 2026 tax rules · How we calculate

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$
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$
More options
$

You keep

$8,150

Cash at payout

$7,300

Total tax

$1,850

Over-withheld

$850

Form W-2G
Yes

$10,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.

Federal withholding at payout
$2,400

The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.

Federal tax on the winnings
$1,550

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.

State tax
$300

Mississippi taxes these winnings at a flat 3% instead of its income tax. Losses don't reduce it.

Mississippi withholding at payout
$300

Mississippi requires the payer to hold back 3% for state tax.

Over-withheld
$850

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.

You keep
$8,150

$10,000 minus $1,850 in federal and state tax: an effective rate of 18.5%.

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.

How Mississippi taxes gambling winnings

State income tax
Mississippi taxes gambling winnings as ordinary income at graduated rates from 0% to 4%.[1]
Flat gambling tax
Winnings at Mississippi casinos, including sports bets placed there, bear a flat 3% tax that the casino withholds. It's the final tax: the winnings stay off your Mississippi return, and the 3% can't be refunded.[2]
Gambling losses
Losses at Mississippi casinos can't be deducted, because those winnings are left out of income. Other gambling losses are deductible only if you itemize, starting from federal Schedule A.[2]Unverified
Withholding
Mississippi casinos withhold 3% from W-2G-reportable winnings, including sports bets, for residents and nonresidents. The 3% is the final tax: it isn't refundable and can't be claimed on your return.[3]Unverified
Nonresidents
Nonresidents pay the final 3% withheld on Mississippi casino winnings and shouldn't file a Mississippi return if that's their only Mississippi income.[2]
Tax paid to other states
Residents can claim a credit on Form 80-160 for income tax owed to another state, capped at the Mississippi tax due and at Mississippi's top rate on that income. You must attach the other state's return.[2]
Legal gambling
Sports betting: legal in person only. State lottery: yes. Casinos: yes. Online casino: not legal.[4]

Also worth knowing

  • On January 1, 2026, the slot jackpot threshold for Mississippi's 3% withholding rose from $1,200 to $2,000, matching the federal W-2G change.[3]
  • Winnings from casinos outside Mississippi are taxable to residents at regular rates and go on Schedule N (Other Income).[2]

Examples by game

For a single filer with $60,000 of other income and no gambling losses, living and winning in Mississippi.

GameWonWithheldFederal taxState taxYou keep
Sports betting$10,000$2,700$1,550$300$8,150
Casino and slots$5,000$150$600$150$4,250
Table games$5,000$0$600$150$4,250
Poker tournaments$20,000$600$3,750$600$15,650
Lottery$50,000$12,000$10,350$2,000$37,650
Daily fantasy sports$5,000$0$600$200$4,200
Horse racing$8,000$1,920$1,110$320$6,570

Questions

Does Mississippi tax gambling winnings?
Winnings at Mississippi casinos, including sports bets placed there, bear a flat 3% tax that the casino withholds. It's the final tax: the winnings stay off your Mississippi return, and the 3% can't be refunded.[2]
Can you deduct gambling losses in Mississippi?
Losses at Mississippi casinos can't be deducted, because those winnings are left out of income. Other gambling losses are deductible only if you itemize, starting from federal Schedule A.[2]Unverified
Does Mississippi withhold tax from gambling winnings?
Mississippi casinos withhold 3% from W-2G-reportable winnings, including sports bets, for residents and nonresidents. The 3% is the final tax: it isn't refundable and can't be claimed on your return.[3]Unverified
Do nonresidents pay Mississippi tax on gambling winnings?
Nonresidents pay the final 3% withheld on Mississippi casino winnings and shouldn't file a Mississippi return if that's their only Mississippi income.[2]

Mississippi by game

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] MS DOR 2025 Form 80-100 Resident, Non-Resident and Part-Year Resident Income Tax Instructions · checked September 22, 2026
  3. [3] MS DOR Notice 80-25-002, Withholding on Mississippi Gaming Winnings (Dec 22, 2025) · checked September 22, 2026
  4. [4] American Gaming Association, Mississippi Gaming Regulatory Fact Sheet (2025) · checked September 22, 2026