Gambling winnings tax in Kansas

Kansas taxes your gross gambling winnings and allows no deduction for losses, so a losing year can still produce a state tax bill.

Checked against Kansas’s own sources on 2026-09-11.

In short

Two 2025 bills to bring back the gambling loss deduction died in committee.13, 14
The 5 percent Kansas withholding on a win is not your tax rate. You settle the difference on your K-40 return.
The Kansas Department of Revenue says there will be no rate reduction for tax year 2026.16

How Kansas treats gambling losses

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Kansas does not let a casual gambler offset winnings with losses at all, so how you file federally makes no difference to the state figure.

The two examples below are the same numbers the calculator uses, worked at Kansas rates.

Two examples, worked at 2026 Kansas rates

A single filer with $60,000 of other income who takes the standard deduction on everything except gambling losses.

A losing year

You win $50,000 and lose $52,000, so you finish down $2,000.

Federal: $3,596
Kansas: $2,790
Total: $6,386

You finished the year down and still owe tax.

Federally you itemize, so your losses offset your winnings, but the 2026 rule caps that deduction at 90 percent and leaves $3,200 taxable. Kansas starts from your federal income and allows no deduction for gambling losses, so the full $50,000 is taxed at 5.58 percent, which comes to $2,790.

A winning year

You win $50,000 and lose $10,000, so you finish up $40,000.

Federal: $10,350
Kansas: $2,790
Total: $13,140

Federally you take the $16,100 standard deduction, which is worth more than itemizing, so your gambling losses do not reduce your federal tax at all. Kansas starts from your federal income and allows no deduction for gambling losses, so the full $50,000 is taxed at 5.58 percent, which comes to $2,790.

Kansas income tax rates, 2026

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Single filer thresholds. Married filing jointly uses different bands. Married filing separately and head of household use the single bands.

Taxable income	Rate
$0 to $23,000	5.2 percent
$23,000 and above	5.58 percent

The calculator also applies what this table leaves out: the standard deduction and personal exemption, taken before the table.

Withholding on winnings

Kansas withholds 5 percent. The payout that triggers it depends on the wager, and the lowest trigger is $5,000. The rules in the state's sources:

the state lottery: above $5,000, measured after the stake comes off (Kansas states no figure of its own and withholds where federal withholding is required).
pari-mutuel wagering and other wagers: above $5,000, and only where the payout is at least 300 times the stake, measured after the stake comes off (paid by a Kansas-based casino or pari-mutuel establishment).
slot machines, keno and bingo: nothing is withheld under the regular rules, though backup withholding can apply where you give no taxpayer identification number.

These sources give no rule for other kinds of bet, so do not assume tax was withheld on one.

Withholding is a credit against the bill, not the bill itself. It does not settle what you owe.

The federal 90 percent loss limit in Kansas

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From tax year 2026 the federal deduction for gambling losses is cut to 90 percent of what you lost, and never more than what you won. Public Law 119-21 did it, at section 70114(a), by rewriting 26 U.S.C. 165(d).

Kansas allows no loss deduction at all, so the federal limit changes your federal bill and not your Kansas bill.

Kansas follows the federal code as it changes. The paragraph above says what this means for the federal 90 percent limit.

If you do not live in Kansas

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Kansas source income expressly includes Kansas lottery, pari-mutuel, casino and gambling winnings. A nonresident computes the resident tax and prorates it by the Kansas share.

The calculator works the bill for somebody who lives in Kansas. It does not apportion income between states, so a nonresident return is not what the figure above describes.

More about Kansas

The gambling loss deduction

Two 2025 bills to bring back the loss deduction, HB 2084 and SB 226, died in committee.13, 14

Nothing in the 2026 session brought the deduction back.

Withholding

Kansas withholding of 5 percent applies to the amount you won less your bet. It is not your tax rate. You settle the difference on your K-40 return.

Tax rates

Single, head of household and married filing separately filers use the same rate table. For a joint return, the threshold is exactly double.4

Both Kansas rates can go down toward 4 percent when state revenue meets set triggers. The Kansas Department of Revenue says there will be no rate reduction for tax year 2026.15, 16

Local tax

Kansas has no local income tax on wages or gambling winnings. The local intangibles tax reaches only gross earnings from money, notes and other evidence of debt.

About this estimate

The estimate takes off your standard deduction and personal exemption together: $12,765 single, $26,560 joint, $13,280 married filing separately, or $17,660 head of household. If you are 65 or older it adds $850, or $700 a married person, for each person 65 or older. It leaves out the $2,320 exemption for each dependent and the extra standard deduction for blindness. If your Kansas itemized deductions are larger than the standard deduction, the figure can differ slightly.

Sources

Every figure above traces to a primary source: a statute, an administrative code, a state agency page, or official form instructions.

1. K.S.A. 79-32,119(b): an additional standard deduction of $850 single or head of household and $700 married, for each federal additional amount for age or blindness (checked 2026-10-12)
2. 2025 Form K-40SVR: a property tax refund at 65 or older, none above household income of $58,041 (checked 2026-10-12)
3. 2025 Form K-40H: the homestead refund from 55, none above household income of $43,389 (checked 2026-10-12)
4. K.S.A. 79-32,110, rates of tax (checked 2026-09-11)
5. K.S.A. 79-32,120, Kansas itemized deductions, a closed list of four items (checked 2026-09-11)
6. Kansas Individual Income Tax booklet (2025), tax computation and Schedule A (checked 2026-09-11)
7. K.S.A. 79-32,119, Kansas standard deduction (checked 2026-10-11)
8. K.S.A. 79-32,121, Kansas personal exemptions, $9,160 or $18,320 joint (checked 2026-10-11)
9. K.S.A. 79-32,121b, an additional $2,320 exemption for head of household (checked 2026-10-11)
10. Form K-40ES (2026), the estimated tax worksheet and its standard deductions (checked 2026-10-11)
11. K.S.A. 79-32,109, rolling conformity and Kansas source income (checked 2026-09-11)
12. Publication KW-100, withholding at 5 percent on gambling proceeds from a Kansas-based lottery, casino or pari-mutuel establishment when federal withholding is required (checked 2026-10-11)
13. Kansas Legislature, HB 2084 (2025-26), itemized deduction for wagering losses, died in committee (checked 2026-10-06)
14. Kansas Legislature, SB 226 (2025-26), itemized deduction for wagering losses, died in committee (checked 2026-10-06)
15. K.S.A. 79-32,110c, rate reductions triggered by revenue, down to 4 percent (checked 2026-10-06)
16. KDOR Notice 25-06, no rate reduction for tax year 2026 (checked 2026-10-06)

The federal rule, for the parts of this page that rest on it

17. Public Law 119-21 section 70114(a), which rewrote 26 U.S.C. 165(d) on wagering losses from tax year 2026 and sets out its text (checked 2026-10-18)