Lottery winnings tax in Mississippi
Mississippi taxes lottery winnings as ordinary income at graduated rates from 0% to 4%.
Updated · 2026 tax rules · How we calculate
You keep
$37,650
Cash at payout
$38,000
Total tax
$12,350
Due when you file
$350
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $2,000
- Still to pay when you file
- $350
- You keep
- $37,650
$50,000 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.
Tax owed ($12,350) minus what was withheld ($12,000). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$50,000 minus $12,350 in federal and state tax: an effective rate of 24.7%.
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 lottery winnings as ordinary income at graduated rates from 0% to 4%.[1]
- Federal tax form
- Lottery prizes of $2,000 or more that are at least 300 times the ticket price are reported on a W-2G. The threshold was $600 before 2026.[2]
- Federal withholding
- 24% is withheld from lottery prizes of more than $5,000 (minus the ticket price). No 300x test applies to lotteries.[4]
- Mississippi withholding
- No Mississippi withholding requirement for lottery 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 lottery winnings won there, so visitors may need to file a nonresident return.[6]
- Where to play
- Mississippi runs a state lottery.[7]
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 |
| $10,000 | Yes | $2,400 | $1,550 | $400 | $8,050 |
| $50,000 | Yes | $12,000 | $10,350 | $2,000 | $37,650 |
| $100,000 | Yes | $24,000 | $22,114 | $4,000 | $73,886 |
Assumes a $2 ticket price, so the 300x test is met at every amount shown.
Questions
- How much is Mississippi tax on lottery winnings?
- Mississippi taxes lottery winnings as ordinary income at graduated rates from 0% to 4%.[1]
- Does Mississippi withhold tax from lottery winnings?
- Mississippi has no withholding requirement for lottery winnings. Tax is due when you file.[5]Unverified
- Do visitors pay Mississippi tax on lottery winnings?
- Mississippi taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[6]
More for Mississippi
All of Mississippi's gambling tax rules · Lottery 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
- [7] American Gaming Association, Mississippi Gaming Regulatory Fact Sheet (2025) · checked September 22, 2026