Poker tournaments winnings tax in North Carolina
North Carolina taxes poker tournament winnings as ordinary income at a flat 3.99%.
Updated · 2026 tax rules · How we calculate
You keep
$15,452
Cash at payout
$20,000
Total tax
$4,548
Due when you file
$4,548
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $3,750
- State tax
- $798
- Still to pay when you file
- $4,548
- You keep
- $15,452
$20,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
Poker tournaments 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 22% bracket.
North Carolina taxes gambling winnings as ordinary income.
Tax owed ($4,548) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$20,000 minus $4,548 in federal and state tax: an effective rate of 22.7%.
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
- North Carolina tax
- North Carolina taxes poker tournament winnings as ordinary income at a flat 3.99%.[1]
- Federal tax form
- Poker tournament winnings of $2,000 or more, net of the buy-in, are reported on a W-2G. No 300x test applies.[2]Unverified
- Federal withholding
- Poker tournament winnings aren't subject to regular withholding if the payer files a W-2G and gives you a copy.[2]Unverified
- North Carolina withholding
- No North Carolina withholding requirement for poker tournament winnings. Tax is due when you file.[3]
- Gambling losses
- A 2026 law (S.L. 2026-41) created a North Carolina itemized deduction for gambling losses, from tax year 2025, capped at the amount federal law allows, so the 90% limit should apply.[5]Unverified
- Visitors
- North Carolina taxes nonresidents on poker tournament winnings won there, so visitors may need to file a nonresident return.[6]
- Where to play
- North Carolina has casinos.[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 North Carolina.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $60 | $1,260 |
| $2,000 | Yes | $0 | $240 | $80 | $1,680 |
| $10,000 | Yes | $0 | $1,550 | $399 | $8,051 |
| $20,000 | Yes | $0 | $3,750 | $798 | $15,452 |
| $100,000 | Yes | $0 | $22,114 | $3,990 | $73,896 |
Questions
- How much is North Carolina tax on poker tournament winnings?
- North Carolina taxes poker tournament winnings as ordinary income at a flat 3.99%.[1]
- Does North Carolina withhold tax from poker tournament winnings?
- North Carolina has no withholding requirement for poker tournament winnings. Tax is due when you file.[3]
- Do visitors pay North Carolina tax on poker tournament winnings?
- North Carolina taxes nonresidents on poker tournament winnings won there, so visitors may need to file a nonresident return.[6]
More for North Carolina
All of North Carolina's gambling tax rules · Poker tournaments 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] N.C.G.S. 105-163.2B; NCDOR sports wagering FAQ Q11 · checked September 22, 2026
- [4] NCDOR FAQ on Sports Wagering Excise Tax and Winnings/Losses (Apr 2024) · checked September 22, 2026
- [5] NCDOR Important Notice: Impact of Recently Enacted Laws (July 2026) · checked September 22, 2026
- [6] N.C.G.S. 105-153.4 · checked September 22, 2026
- [7] Fox Sports, Where is sports betting legal? · checked September 22, 2026