Horse racing winnings tax in Mississippi
Mississippi taxes horse racing winnings as ordinary income at graduated rates from 0% to 4%.
Updated · 2026 tax rules · How we calculate
You keep
$6,570
Cash at payout
$6,080
Total tax
$1,430
Over-withheld
$490
- Form W-2G
- Yes
- Federal withholding at payout
- $1,920
- Federal tax on the winnings
- $1,110
- State tax
- $320
- Over-withheld
- $490
- You keep
- $6,570
$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.
Mississippi taxes gambling winnings as ordinary income.
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 $1,430 in federal and state tax: an effective rate of 17.9%.
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
- Mississippi tax
- Mississippi taxes horse racing winnings as ordinary income at graduated rates from 0% to 4%.[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]
- Mississippi withholding
- No Mississippi withholding requirement for horse racing winnings. Tax is due when you file.[5]Unverified
- 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.[6]Unverified
- Visitors
- Mississippi 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 Mississippi.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $60 | $1,260 |
| $2,000 | Yes | $0 | $240 | $80 | $1,680 |
| $8,000 | Yes | $1,920 | $1,110 | $320 | $6,570 |
| $10,000 | Yes | $2,400 | $1,550 | $400 | $8,050 |
| $100,000 | Yes | $24,000 | $22,114 | $4,000 | $73,886 |
Assumes a $2 bet amount, so the 300x test is met at every amount shown.
Questions
- How much is Mississippi tax on horse racing winnings?
- Mississippi taxes horse racing winnings as ordinary income at graduated rates from 0% to 4%.[1]
- Does Mississippi withhold tax from horse racing winnings?
- Mississippi has no withholding requirement for horse racing winnings. Tax is due when you file.[5]Unverified
- Do visitors pay Mississippi tax on horse racing winnings?
- Mississippi taxes nonresidents on horse racing winnings won there, so visitors may need to file a nonresident return.[6]
More for Mississippi
All of Mississippi'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] MS DOR Notice 80-25-002, Withholding on Mississippi Gaming Winnings (Dec 22, 2025) · checked September 22, 2026
- [6] MS DOR 2025 Form 80-100 Resident, Non-Resident and Part-Year Resident Income Tax Instructions · checked September 22, 2026