Casino and slots winnings tax in New Jersey
New Jersey taxes slot machine winnings as ordinary income at graduated rates from 1.4% to 10.75%.
Updated · 2026 tax rules · How we calculate
You keep
$4,124
Cash at payout
$5,000
Total tax
$876
Due when you file
$876
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $276
- Still to pay when you file
- $876
- You keep
- $4,124
$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.
New Jersey taxes gambling winnings as ordinary income.
Tax owed ($876) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $876 in federal and state tax: an effective rate of 17.5%.
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
- New Jersey tax
- New Jersey taxes slot machine winnings as ordinary income at graduated rates from 1.4% to 10.75%.[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]
- New Jersey withholding
- New Jersey withholds 3% whenever federal tax is withheld.[5]Unverified
- Gambling losses
- You can subtract gambling and lottery losses from the same year from your winnings on NJ-1040 line 24 without itemizing, down to zero. The federal 90% limit doesn't apply.[6]
- Visitors
- New Jersey taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[5]
- Where to play
- New Jersey has casinos, and online casino gaming is legal.[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 New Jersey.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $83 | $1,237 |
| $2,000 | Yes | $0 | $240 | $111 | $1,650 |
| $5,000 | Yes | $0 | $600 | $276 | $4,124 |
| $10,000 | Yes | $0 | $1,550 | $553 | $7,898 |
| $100,000 | Yes | $0 | $22,114 | $6,235 | $71,651 |
Questions
- How much is New Jersey tax on slot machine winnings?
- New Jersey taxes slot machine winnings as ordinary income at graduated rates from 1.4% to 10.75%.[1]
- Does New Jersey withhold tax from slot machine winnings?
- New Jersey withholds 3% whenever federal tax is withheld.[5]Unverified
- Do visitors pay New Jersey tax on slot machine winnings?
- New Jersey taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[5]
More for New Jersey
All of New Jersey's gambling tax rules · Casino and slots 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] NJ Division of Taxation - Lottery and Gambling Winnings · checked September 22, 2026
- [6] 2025 NJ-1040 Instructions, Line 24 and income category rules · checked September 22, 2026
- [7] NJ Division of Gaming Enforcement · checked September 22, 2026