Casino and slots 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 $5,000 slot machine win, $150 is withheld at payout. The tax comes to $750 ($600 federal and $150 Mississippi), $600 of it due when you file, so you keep $4,250. 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
$4,250
Cash at payout
$4,850
Total tax
$750
Due when you file
$600
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $150
- Mississippi withholding at payout
- $150
- Still to pay when you file
- $600
- You keep
- $4,250
$5,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
Casino and slots 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 12% 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 ($750) minus what was withheld ($150). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $750 in federal and state tax: an effective rate of 15%.
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
- Slot machine and bingo winnings of $2,000 or more are reported on a W-2G, without subtracting the wager. The threshold was $1,200 before 2026. Keno is also $2,000, after subtracting the wager on the winning game.[2]
- Federal withholding
- Slot machine, keno and bingo winnings are exempt from regular gambling withholding by statute, whatever the amount.[4]
- Mississippi withholding
- Mississippi withholds 3% on slot machine winnings of $2,000 or more.[5]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 slot machine winnings as residents.[1]
- Where to play
- Mississippi has casinos.[9]
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 |
| $5,000 | Yes | $150 | $600 | $150 | $4,250 |
| $10,000 | Yes | $300 | $1,550 | $300 | $8,150 |
| $100,000 | Yes | $3,000 | $22,114 | $3,000 | $74,886 |
Records to keep for slot machine winnings
A slot jackpot is reported on its own, without subtracting what you put in the machine. Keno and bingo follow similar rules.
Losses only count if you can prove them. For slot machine winnings, the IRS suggests keeping:[7]
- Slot machines: the machine number, and all winnings by date and time you played it
- Keno: the keno tickets you bought, validated by the casino, and copies of your casino credit and check-cashing records
- Bingo: the number of games played, what you paid for tickets and what you collected on winning tickets, plus any receipts from the casino or bingo hall
The IRS proposed counting slot wins and losses per session (one casino, one calendar day) in Notice 2015-21, but never finalized it.[8]
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 slot machine 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 slot machine winnings?
- Mississippi withholds 3% on slot machine winnings of $2,000 or more.[5]Unverified
- Do visitors pay Mississippi tax on slot machine winnings?
- Visitors pay the same 3% flat tax on slot machine winnings as residents.[1]
More for Mississippi
All of Mississippi's gambling tax rules · Casino and slots in every state
Sources
- [1] MS DOR 2025 Form 80-100 Resident, Non-Resident and Part-Year Resident Income Tax Instructions · checked October 2, 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] Mississippi DOR, Individual Income Tax FAQs · checked October 2, 2026
- [7] IRS, Publication 529, Miscellaneous Deductions · checked September 28, 2026
- [8] IRS, Notice 2015-21 (slot machine sessions) · checked September 22, 2026