Poker tournaments winnings tax in Mississippi
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.
On a $20,000 poker tournament win, $600 is withheld at payout. The tax comes to $4,350 ($3,750 federal and $600 Mississippi), $3,750 of it due when you file, so you keep $15,650. That's for a single filer with $60,000 of other income and no gambling losses.
Updated · 2026 tax rules · How we calculate
You keep
$15,650
Cash at payout
$19,400
Total tax
$4,350
Due when you file
$3,750
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $3,750
- State tax
- $600
- Mississippi withholding at payout
- $600
- Still to pay when you file
- $3,750
- You keep
- $15,650
$20,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
Poker tournaments winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file. If you don't give the payer your Social Security number, 24% backup withholding applies.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
Mississippi taxes these winnings at a flat 3% instead of its income tax. Losses don't reduce it.
Mississippi requires the payer to hold back 3% for state tax.
Tax owed ($4,350) minus what was withheld ($600). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$20,000 minus $4,350 in federal and state tax: an effective rate of 21.8%.
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
- 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.[1]
- Federal tax form
- Poker tournament winnings of $2,000 or more, net of the buy-in, are reported on a W-2G. No 300x test applies.[2]Unverified
- Federal withholding
- Poker tournament winnings aren't subject to regular withholding if the payer files a W-2G and gives you a copy.[2]Unverified
- Mississippi withholding
- Mississippi withholds 3% on poker tournament winnings of $2,000 or more.[3]Unverified
- Gambling losses
- Losses at Mississippi casinos can't be deducted, because those winnings are left out of Mississippi income. Other gambling losses are deductible only if you itemize on Mississippi Schedule A, which starts from the federal Schedule A amounts, so the federal 90% limit carries over.[1] How the federal 90% loss rule works
- Visitors
- Visitors pay the same 3% flat tax on poker tournament winnings as residents.[1]
- Where to play
- Mississippi has casinos.[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 | $45 | $1,275 |
| $2,000 | Yes | $60 | $240 | $60 | $1,700 |
| $10,000 | Yes | $300 | $1,550 | $300 | $8,150 |
| $20,000 | Yes | $600 | $3,750 | $600 | $15,650 |
| $100,000 | Yes | $3,000 | $22,114 | $3,000 | $74,886 |
Records to keep for poker tournament winnings
Tournament winnings are measured net of the buy-in. Cash game winnings are taxable too but are not reported by the casino.
Losses only count if you can prove them. For poker tournament winnings, the IRS suggests keeping:[4]
- The number of the table you played at
- Casino credit card data showing whether credit was issued in the pit or at the cashier's cage
All of this goes alongside the diary the IRS expects for every kind of gambling: keeping gambling records the IRS will accept.
Questions
- How much is Mississippi tax on poker tournament 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.[1]
- Does Mississippi withhold tax from poker tournament winnings?
- Mississippi withholds 3% on poker tournament winnings of $2,000 or more.[3]Unverified
- Do visitors pay Mississippi tax on poker tournament winnings?
- Visitors pay the same 3% flat tax on poker tournament winnings as residents.[1]
More for Mississippi
All of Mississippi's gambling tax rules · Poker tournaments in every state
Sources
- [1] MS DOR 2025 Form 80-100 Resident, Non-Resident and Part-Year Resident Income Tax Instructions · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] MS DOR Notice 80-25-002, Withholding on Mississippi Gaming Winnings (Dec 22, 2025) · checked September 22, 2026
- [4] IRS, Publication 529, Miscellaneous Deductions · checked September 28, 2026