Gambling winnings tax in Mississippi

Mississippi allows gambling losses only as an itemized deduction on the state return, whether or not you itemize federally. Take its standard deduction and it taxes your gross winnings. Whether only 90 percent of your losses count from 2026 is not settled. Winnings its own casinos report on Form W-2G are outside this, under a separate 3 percent final tax.

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

In short

If a Mississippi casino reports your win on Form W-2G, you pay a separate 3 percent on those winnings, no matter how much you lost.3
If you live in Mississippi and win outside Mississippi, those winnings are taxed as ordinary income, not at the separate 3 percent.3
If you file jointly and only one of you has income, only $10,000 is taxed at zero, not $20,000.3

How Mississippi treats gambling losses

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Mississippi does not tie the deduction to your federal itemizing choice. You can itemize on the Mississippi return even if you take the federal standard deduction, but the losses count only if you do, in place of Mississippi's standard deduction.

This does not reach Mississippi’s own casinos. Winnings a casino there reports on Form W-2G are outside the income tax, under a final tax of 3 percent withheld at the casino, and losses there are not deductible at all. The examples below follow the ordinary return, which is where winnings from anywhere else go.

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

Two examples, worked at 2026 Mississippi 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
Mississippi: $220
Total: $3,816

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. Mississippi lets you deduct gambling losses from outside Mississippi as an itemized deduction on the state return, whether or not you itemize federally. Your Mississippi income, after the larger of the standard deduction and your itemized deductions, and your $6,000 personal exemption, goes from $51,700 without the win to $57,200 with it. The extra $5,500 is taxed at 4 percent, which comes to $220.

A winning year

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

Federal: $10,350
Mississippi: $1,732
Total: $12,082

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. Mississippi lets you deduct gambling losses from outside Mississippi as an itemized deduction on the state return, whether or not you itemize federally. Your Mississippi income, after the larger of the standard deduction and your itemized deductions, and your $6,000 personal exemption, goes from $51,700 without the win to $95,000 with it. The extra $43,300 is taxed at 4 percent, which comes to $1,732.

Mississippi income tax rates, 2026

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Taxable income	Rate
$0 to $10,000	0 percent
$10,000 and above	4 percent

The calculator also applies what this table leaves out: a personal exemption of $6,000 a person, or $9,500 for head of household, taken before the table.

Withholding on winnings

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Mississippi casinos withhold 3 percent of the winnings they report to the IRS, which for slot winnings starts at $2,000.

That 3 percent is a final tax on the winnings, not a credit against an income tax bill.

The federal 90 percent loss limit in Mississippi

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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).

No Mississippi statute or guidance addresses the federal 90 percent limit for tax year 2026.

Mississippi adopts federal provisions one at a time rather than wholesale. The paragraph above says what this means for the federal 90 percent limit.

Our estimate assumes the limit applies, which gives the higher tax. The calculator also shows the tax if the limit does not apply. We would rather tell you the number could be lower than let you plan around one that turns out to be too low.

If you do not live in Mississippi

A nonresident whose only Mississippi income is gambling files no Mississippi return at all. The document the casino provides is treated as the return.

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

More about Mississippi

Winnings at Mississippi casinos

Winnings a Mississippi casino reports on Form W-2G are not part of the Mississippi income tax. A separate 3 percent final tax applies to them, with no netting. On those winnings you pay 3 percent, no matter how much you lost.3

You cannot deduct losses at Mississippi gaming establishments. You also cannot deduct the 3 percent withheld, or take it as a credit.3

Winnings outside Mississippi, and online bets

The separate 3 percent tax applies only to winnings from Mississippi casinos. If you live in Mississippi and win outside Mississippi, you report those winnings on Form 80-108 Schedule N, and they are taxed as ordinary income.3

Mississippi sports betting is retail-only. So if you bet online, you are almost always on the ordinary income tax path.

The rate

The rate was 4.4 percent for 2025. Under House Bill 1 the rate starts to go down in 2027 and reaches a 3.0 percent floor in 2030. From 2031 any further cut depends on revenue.3

If you file jointly

The zero-rate band is per spouse with income. If both of you have income, you can file a combined return. Each of you puts your own income in your own column, and each column has $10,000 taxed at zero. So $20,000 is taxed at zero only if both of you have income. If only one of you does, all the income goes in one column and only $10,000 is taxed at zero.3

If you itemize

No Mississippi source says in one sentence that you can deduct gambling losses from outside Mississippi on the Mississippi Schedule A. The 2025 booklet bars losses at Mississippi gaming establishments by name and says nothing about other losses.

From 2026 the federal overall limit on itemized deductions, IRC 68, cuts only the total on your federal Schedule A. The 2025 Mississippi Schedule A copies the federal category lines one by one, not that total. So as the form is built, the cut does not reach Mississippi.

This is not settled. Miss. Admin. Code Title 35, Part III, Subpart 11, Rule 103 may limit Mississippi itemized deductions when federal ones are limited by adjusted gross income. But the new federal limit keys on taxable income instead. No 2026 Mississippi form is published yet.

If you live in another state

If you live in a state that gives a credit for tax paid to other states and you win in Mississippi, you cannot get a Mississippi refund. Apart from the casino document, Mississippi issues no return you can use to support a credit in your own state.6

About this estimate

If you are 65 or older, the calculator takes off Mississippi’s extra $1,500 exemption for each person 65 or older.

The calculator works out the ordinary income tax path, the one you are almost always on if you bet online.

The calculator deducts gambling losses from outside Mississippi.

The calculator gives a joint return $10,000 at zero, as if only one of you has income. A win counts as income of the spouse who won it, and deductions can go to either column. So if the other spouse has income too, your 2026 Mississippi tax can be up to $400 less than it shows, most of all when the winner has little income of their own. Enter the winning spouse’s own income under “Get a more accurate number” and the calculator lays out the combined return instead.

The calculator does not apply the federal limit on itemized deductions (IRC 68) to Mississippi.

The calculator takes off the $6,000, $9,500 or $12,000 personal exemption for your filing status, but not the $1,500 for each further dependent.

Sources

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

1. 2026 withholding guide (revised 1/13/2026): an additional exemption of $1,500 for the taxpayer or spouse or both who have reached 65 (checked 2026-10-12)
2. Mississippi DOR withholding guide, revised 1/13/2026, exemptions and standard deduction schedule for 2026 (checked 2026-10-09)
3. Form 80-100 resident booklet (2025), rates, gaming carve-out and Schedule N (checked 2026-09-11)
4. Form 80-100 resident booklet (2025), Form 80-108: a filer who took the federal standard deduction may itemize for Mississippi (checked 2026-10-02)
5. MS DOR notice, income tax rates for tax year 2026 (checked 2026-09-11)
6. MS DOR individual income tax FAQs, Section 27-7-901 gaming carve-out (checked 2026-09-11)
7. MS DOR notice, withholding on Mississippi gaming winnings (checked 2026-09-11)

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

8. 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)

We could not confirm these from an official source: the date the state follows the federal code to; whether any city or county tax applies.