Gambling winnings tax in Missouri

Missouri allows gambling losses only if you itemize on your federal return. Take the standard deduction and it taxes your gross winnings. Whether only 90 percent of your losses count from 2026 is not settled.

Checked against Missouri’s own sources on 2026-09-25.

In short

  • Missouri lets you deduct a share of your federal income tax. A win raises your federal tax and so the deduction, but a win that takes you over a line lowers the share on your whole federal tax.15, 6
  • Missouri does not tax state lottery prizes that add up to less than $600 in a tax year.11
  • St. Louis lists gambling and lottery winnings as not taxable under its earnings tax.14

How Missouri treats gambling losses

5, 7

Missouri allows the deduction only to filers who itemize on the federal return. Take the federal standard deduction and the offset disappears, so gross winnings are taxed even in a year you finished down.

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

Two examples, worked at 2026 Missouri 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
Missouri
$922
Total
$4,518

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. Missouri allows the loss deduction only to filers who itemize federally, which you do. Your Missouri income, after the federal standard deduction, or your itemized deductions where you itemize federally and they are larger, and after the share of federal income tax it lets you deduct, which falls as income rises, goes from $43,147 without the win to $62,769 with it. The win lowers that share, so the federal income tax you deduct falls from $753 to $431. The extra $19,622 is taxed at 4.7 percent, which comes to $922.

A winning year

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

Federal
$10,350
Missouri
$2,349
Total
$12,699

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. Missouri allows the loss deduction only to filers who itemize federally, and you do not. Your Missouri income, after the federal standard deduction, or your itemized deductions where you itemize federally and they are larger, and after the share of federal income tax it lets you deduct, which falls as income rises, goes from $43,147 without the win to $93,132 with it. The extra $49,985 is taxed at 4.7 percent, which comes to $2,349.

Missouri income tax rates, 2026

5, 8
Taxable incomeRate
$0 to $1,3480 percent
$1,348 to $2,6962 percent
$2,696 to $4,0442.5 percent
$4,044 to $5,3923 percent
$5,392 to $6,7403.5 percent
$6,740 to $8,0884 percent
$8,088 to $9,4364.5 percent
$9,436 and above4.7 percent

The calculator also applies what this table leaves out: a deduction for a share of the federal income tax, a share that falls as income rises, taken before the table and the federal overall limit on itemized deductions at the top federal bracket, taken before the table.

Withholding on winnings

3, 11

Missouri withholds 4 percent. The rule in the state's sources:

  • the state lottery: $600 or more.

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.

Local tax

13

Local earnings taxes do not reach casual gambling winnings. RSMo 92.111 limits the base to compensation earned and business net profits. One point is not clear. RSMo 313.321.5 bars state income tax and local earnings tax on state lottery prizes under $600. Read literally, that implies a local tax could apply to larger prizes. This page gives no local tax figure without a city ruling. We could not get the Kansas City ordinance.

The federal 90 percent loss limit in Missouri

7, 10, 17

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).

Missouri has not said whether the federal 90 percent limit applies. Its own law measures the state deduction by the federal figure, so the limit can arrive without Missouri doing anything. Missouri follows the federal code as it changes.

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 Missouri

5, 12

A nonresident is taxed on Missouri source gambling winnings, meaning state lottery winnings and any other wager placed in Missouri, but only where the payer must report the proceeds to the IRS. No filing is required below $600 of Missouri income.

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

More about Missouri

How a win changes the federal tax deduction

Missouri lets you deduct a share of your federal income tax. The share depends on your Missouri adjusted gross income:15, 6
Missouri adjusted gross incomeShare of federal tax you deduct
$25,000 or less35 percent
Up to $50,00025 percent
Up to $100,00015 percent
Up to $125,0005 percent
Above $125,000Nothing
After the share is taken, the deduction is capped at $5,000, or $10,000 on a combined return. A win raises your federal tax and so the deduction, but a win that takes you over a line lowers the share on your whole federal tax.15, 6

If you itemize

If you itemize on your federal return, Missouri lets you take whichever is larger, your Missouri itemized deductions or the Missouri standard deduction.5
If you must itemize on your federal return, for example married filing separately with a spouse who itemizes, you cannot take the larger of the two deductions.5
Missouri adds social security and Medicare tax to your itemized total and takes out state income tax.7

Missouri’s tax rates

Missouri uses one rate table for every filing status. If you and your spouse file a combined return, each of you works out tax separately on your own taxable income.5, 8
The 2026 Missouri table raises the bracket amounts and keeps the rates. The top rate is 4.7 percent in both 2025 and 2026.8, 5

Local tax

St. Louis lists gambling and lottery winnings as not taxable under its earnings tax.14
Kansas City very likely does not tax them either, but this is not confirmed at the city level.

Withholding

The only Missouri gambling withholding rule on record is the 4 percent on state lottery prizes. Missouri sources do not mention sports wagering winnings, so it is not confirmed whether Missouri withholds on them.

Small lottery prizes

Missouri does not tax state lottery prizes that add up to less than $600 in a tax year, at the state or local level (RSMo 313.321.5).11

About this estimate

For the Missouri deduction of federal tax, the calculator uses your federal tax before any credit. If you have federal credits, you can owe more or less than the estimate shows.6
The calculator does not add social security and Medicare tax to your itemized total, and it does not take out state income tax.
The calculator does not check whether you must itemize on your federal return.
The calculator does not include the exemption for small Missouri lottery prizes. If your only winnings are small Missouri lottery prizes, the estimate is too high.

Sources

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

  1. 1. RSMo 135.010: the property tax credit at 65 or older, and income less $2,800 or $5,800 from 2026 (checked 2026-10-12)
  2. 2. RSMo 135.030: the 2026 upper limits, $38,200, $42,200, $41,000 and $48,000 (checked 2026-10-12)
  3. 3. RSMo 143.131 and 143.141, the Missouri standard deduction is the federal one, and a federal itemizer may take the larger (checked 2026-09-25)
  4. 4. Form MO-1040ES (2026), standard deductions of $16,100, $24,150 and $32,200 (checked 2026-09-25)
  5. 5. Form MO-1040 instructions (2025), tax chart, itemizing rules, federal tax deduction, and no return for a nonresident with less than $600 of Missouri income (checked 2026-10-11)
  6. 6. Form MO-1040 instructions (2025), lines 9 to 13: the federal tax taken, the share by Missouri adjusted gross income, and the cap after the share (checked 2026-09-25)
  7. 7. RSMo 143.141, the Missouri itemized deduction is the allowable federal itemized deductions, and only for a federal itemizer (checked 2026-09-16)
  8. 8. Form MO-1040ES (2026), 2026 tax chart (checked 2026-09-11)
  9. 9. RSMo 143.111, Missouri taxable income (checked 2026-09-11)
  10. 10. RSMo 143.091, rolling conformity to the Internal Revenue Code (checked 2026-09-11)
  11. 11. RSMo 313.321, 4 percent withholding on state lottery prizes of $600 or more (checked 2026-09-15)
  12. 12. RSMo 143.181, Missouri source income of a nonresident (checked 2026-09-11)
  13. 13. RSMo 92.111, base of a municipal earnings tax (checked 2026-09-11)
  14. 14. City of St. Louis Collector of Revenue, earnings tax taxable and non-taxable items: gambling and lottery winnings are non-taxable (checked 2026-10-06)
  15. 15. RSMo 143.171, federal income tax deduction by Missouri gross income (checked 2026-09-25)
  16. 16. RSMo 143.141: the Missouri itemized deduction means "the allowable federal itemized deductions", which from 2026 are after the federal overall limit on itemized deductions (checked 2026-10-01)

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

  1. 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)

The rules behind these numbers

Other states

Where your sportsbook or app puts your tax forms