Casino and slots winnings tax in District of Columbia
District of Columbia taxes slot machine winnings as ordinary income at graduated rates from 4% to 10.75%.
Updated · 2026 tax rules · How we calculate
You keep
$4,075
Cash at payout
$5,000
Total tax
$925
Due when you file
$925
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $325
- Still to pay when you file
- $925
- You keep
- $4,075
$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.
District of Columbia taxes gambling winnings as ordinary income.
Tax owed ($925) 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 $925 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
- District of Columbia tax
- District of Columbia taxes slot machine winnings as ordinary income at graduated rates from 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]
- District of Columbia withholding
- No District of Columbia withholding requirement for slot machine winnings. Tax is due when you file.[5]
- Gambling losses
- You can deduct losses only if you itemize on your federal return, because DC requires the same deduction type as federal.[6]
- Visitors
- District of Columbia does not tax nonresidents on slot machine winnings. Visitors owe tax to their home state instead.[6]
- Where to play
- District of Columbia has no casinos. Winnings from a casino trip to another state are still taxable here.[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 District of Columbia.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $98 | $1,223 |
| $2,000 | Yes | $0 | $240 | $130 | $1,630 |
| $5,000 | Yes | $0 | $600 | $325 | $4,075 |
| $10,000 | Yes | $0 | $1,550 | $650 | $7,800 |
| $100,000 | Yes | $0 | $22,114 | $8,178 | $69,708 |
Questions
- How much is District of Columbia tax on slot machine winnings?
- District of Columbia taxes slot machine winnings as ordinary income at graduated rates from 4% to 10.75%.[1]
- Does District of Columbia withhold tax from slot machine winnings?
- District of Columbia has no withholding requirement for slot machine winnings. Tax is due when you file.[5]
- Do visitors pay District of Columbia tax on slot machine winnings?
- District of Columbia does not tax nonresidents on slot machine winnings. Visitors owe tax to their home state instead.[6]
More for District of Columbia
All of District of Columbia's gambling tax rules · Casino and slots in every state
- Sports betting in District of ColumbiaW-2G at $2,000
- Table games in District of ColumbiaNo tax form, still taxable
- Poker tournaments in District of ColumbiaW-2G at $2,000
- Lottery in District of ColumbiaW-2G at $2,000
- Daily fantasy sports in District of Columbia1099-MISC at $2,000
- Horse racing in District of ColumbiaW-2G at $2,000
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] D.C. Code 47-1812.08(l) · checked September 22, 2026
- [6] DC 2025 D-40 Booklet (Calculation F; Line 17) · checked September 22, 2026
- [7] American Gaming Association, State of the States 2025 · checked September 22, 2026