“Well, I went to a casino and won a few thousand dollars in the slots, why do I have to pay a state tax on those winnings when I can’t even afford to live?” — Anonymous
For states like Nevada, Mississippi, and New Jersey, casino gambling is essentially a tax on individuals. These states have the highest tax rates in the country, nearly 50% in the case of New Jersey.
So, when you put in your hard-earned money, the state takes a larger and larger chunk of it as your winnings increase to win the full amount you need to use 먹튀.
A simple example of a $5,000 win is 50% tax for the state and 50% for the casino (or whatever the casino is legally called in your state).
While a small win here and there is still not a big deal, on average, this means that over time a gambler could end up paying over 10% of his winnings to the state.
So, with the casinos collecting their share of the tax from the state, it’s now the individual’s turn to keep up.
And just how much would you have to pay if you make $20,000 a year?
Typically, the tax rate is much lower for those who make less money than the top wage earners in your state. But that isn’t true in all cases.
A lot of small winnings over $1,000 are taxable for every state, regardless of income. However, the larger your winnings are, the more you are taxed at the state level.
When Should I Be Scared of Taxes?
So, when is it time to panic and pay up? As mentioned before, the reason that taxes are often higher in states where gambling is legal is that it’s a tax on individuals. All of this revenue is generated through these gambling enterprises, making you, the individual, the ones to pay up.