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Last Updated: 8/23/2018

Gambling Winnings

Only the Minnesota State Lottery is subject to Minnesota withholding tax requirements on gambling winnings. All other organizations do not need to withhold Minnesota tax on cash and noncash winnings, even if federal withholding is required.

If I pay out gambling winnings, can I withhold Minnesota tax?

You may voluntarily withhold Minnesota tax if you and the winner agree to do so. You must have a Minnesota Tax ID Number and withholding tax account before filing and paying withholding tax.

How much tax do I withhold?

You may withhold Minnesota tax at the supplemental rate of 6.25 percent or a rate you and the winner agree to.

Are gambling winnings taxable?

Yes. Gambling income ("winnings") is subject to state and federal income taxes. For more information on income tax obligations, see Minnesota Taxation of Gambling Winnings.