Sports betting 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 $10,000 sports betting win, $2,700 is withheld at payout. The tax comes to $1,850 ($1,550 federal and $300 Mississippi), and you get $850 back when you file, so you keep $8,150. 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
$8,150
Cash at payout
$7,300
Total tax
$1,850
Over-withheld
$850
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $300
- Mississippi withholding at payout
- $300
- Over-withheld
- $850
- You keep
- $8,150
$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.
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 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.
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.
$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.
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
- Sports betting 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 sports betting winnings of more than $5,000, but only when the win is also at least 300 times the wager.[2]
- Mississippi withholding
- Mississippi withholds 3% on sports betting 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 sports betting winnings as residents.[1]
- Where to play
- Sports betting in Mississippi: legal in person only. Winnings from a bet placed in another state are taxable here all the same.[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 | $45 | $1,275 |
| $2,000 | No | $60 | $240 | $60 | $1,700 |
| $10,000 | Yes | $2,700 | $1,550 | $300 | $8,150 |
| $100,000 | Yes | $27,000 | $22,114 | $3,000 | $74,886 |
Assumes a $25 stake on this bet, so the 300x test is met at every amount shown.
Records to keep for sports betting winnings
Winnings are your payout minus your stake. A W-2G also needs the win to be at least 300 times the stake, which in practice means a long-odds parlay or futures bet.
Losses only count if you can prove them. The IRS doesn't list records specific to sports betting, so its general gambling diary and the paperwork behind it are what count: keeping gambling records the IRS will accept.
Questions
- How much is Mississippi tax on sports betting 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 sports betting winnings?
- Mississippi withholds 3% on sports betting winnings of $2,000 or more.[5]Unverified
- Do visitors pay Mississippi tax on sports betting winnings?
- Visitors pay the same 3% flat tax on sports betting winnings as residents.[1]
More for Mississippi
All of Mississippi's gambling tax rules · Sports betting 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