Horse racing winnings tax in Missouri
Missouri taxes horse racing winnings as ordinary income at graduated rates from 0% to 4.7%.
Updated · 2026 tax rules · How we calculate
You keep
$6,514
Cash at payout
$6,080
Total tax
$1,486
Over-withheld
$434
- Form W-2G
- Yes
- Federal withholding at payout
- $1,920
- Federal tax on the winnings
- $1,110
- State tax
- $376
- Over-withheld
- $434
- You keep
- $6,514
$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.
Missouri 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 $1,486 in federal and state tax: an effective rate of 18.6%.
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
- Missouri tax
- Missouri taxes horse racing winnings as ordinary income at graduated rates from 0% to 4.7%.[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]
- Missouri withholding
- No Missouri withholding requirement for horse racing winnings. Tax is due when you file.[5]Unverified
- Gambling losses
- You can deduct gambling losses only by itemizing on Form MO-A, and only if you itemized federally. Missouri uses your allowable federal itemized deductions, so the 90% limit carries over.[6]
- Visitors
- Missouri taxes nonresidents on horse racing winnings won there, so visitors may need to file a nonresident return.[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 Missouri.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $71 | $1,250 |
| $2,000 | Yes | $0 | $240 | $94 | $1,666 |
| $8,000 | Yes | $1,920 | $1,110 | $376 | $6,514 |
| $10,000 | Yes | $2,400 | $1,550 | $470 | $7,980 |
| $100,000 | Yes | $24,000 | $22,114 | $4,700 | $73,186 |
Assumes a $2 bet amount, so the 300x test is met at every amount shown.
Questions
- How much is Missouri tax on horse racing winnings?
- Missouri taxes horse racing winnings as ordinary income at graduated rates from 0% to 4.7%.[1]
- Does Missouri withhold tax from horse racing winnings?
- Missouri has no withholding requirement for horse racing winnings. Tax is due when you file.[5]Unverified
- Do visitors pay Missouri tax on horse racing winnings?
- Missouri taxes nonresidents on horse racing winnings won there, so visitors may need to file a nonresident return.[7]
More for Missouri
All of Missouri'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] RSMo 313.826 (casino) and RSMo 313.321 (lottery) · checked September 22, 2026
- [6] RSMo 143.141 - Missouri itemized deduction · checked September 22, 2026
- [7] RSMo 143.181 - Missouri source income of nonresidents · checked September 22, 2026