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WinningsTax

Casino and slots winnings tax in New Mexico

New Mexico taxes slot machine winnings as ordinary income at graduated rates from 1.5% to 5.9%.

Updated · 2026 tax rules · How we calculate

$
$
$
More options
$

You keep

$4,165

Cash at payout

$4,700

Total tax

$835

Due when you file

$535

Form W-2G
Yes

$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.

Federal withholding at payout
$0

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.

Federal tax on the winnings
$600

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 12% bracket.

State tax
$235

New Mexico taxes gambling winnings as ordinary income.

New Mexico withholding at payout
$300

New Mexico requires the payer to hold back 6% for state tax.

Still to pay when you file
$535

Tax owed ($835) minus what was withheld ($300). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.

You keep
$4,165

$5,000 minus $835 in federal and state tax: an effective rate of 16.7%.

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 Mexico tax
New Mexico taxes slot machine winnings as ordinary income at graduated rates from 1.5% to 5.9%.[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 Mexico withholding
New Mexico withholds 6% on slot machine winnings of $2,000 or more.[5]
Gambling losses
Gambling losses count only through your federal itemized deductions, which New Mexico copies from your Form 1040, so the 90% limit carries over.[6]
Visitors
New Mexico taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[7]
Where to play
New Mexico has casinos.[8]

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 Mexico.

WonW-2GWithheldFederal taxState taxYou keep
$1,500No$0$180$71$1,250
$2,000Yes$120$240$94$1,666
$5,000Yes$300$600$235$4,165
$10,000Yes$600$1,550$470$7,980
$100,000Yes$6,000$22,114$4,855$73,031

Questions

How much is New Mexico tax on slot machine winnings?
New Mexico taxes slot machine winnings as ordinary income at graduated rates from 1.5% to 5.9%.[1]
Does New Mexico withhold tax from slot machine winnings?
New Mexico withholds 6% on slot machine winnings of $2,000 or more.[5]
Do visitors pay New Mexico tax on slot machine winnings?
New Mexico taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[7]

More for New Mexico

All of New Mexico's gambling tax rules · Casino and slots in every state

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
  3. [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
  4. [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
  5. [5] FYI-104 New Mexico Withholding Tax (Rev. 11/2025, effective Jan 1, 2026) · checked September 22, 2026
  6. [6] 2025 PIT-1 Instructions, Line 12 · checked September 22, 2026
  7. [7] 2025 PIT-B Instructions, Line 7 · checked September 22, 2026
  8. [8] Fox Sports, Where is sports betting legal? · checked September 22, 2026