Kalshi taxes by state

Your Kalshi gains are taxed federally everywhere, but what you owe your state varies a lot, from zero in the no-income-tax states to more than ten percent at the top. Pick your state to see how it treats prediction-market profit and what to expect.

The 9 states with no individual income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) tax your gains only federally. Everywhere else, your trading profit is generally taxed as ordinary income at the state level too.

State tax calculator →How Kalshi taxes work
Alabama5%Alaskano taxArizona2.5%Arkansas3.9%California13.3%Colorado4.4%Connecticut6.99%Delaware6.6%District of Columbia10.75%Floridano taxGeorgia5.39%Hawaii11%Idaho5.8%Illinois4.95%Indiana3%Iowa3.8%Kansas5.7%Kentucky4%Louisiana3%Maine7.15%Maryland5.75%Massachusetts5%Michigan4.25%Minnesota9.85%Mississippi4.4%Missouri4.7%Montana5.9%Nebraska5.2%Nevadano taxNew Hampshireno taxNew Jersey10.75%New Mexico5.9%New York10.9%North Carolina4.5%North Dakota2.5%Ohio3.5%Oklahoma4.75%Oregon9.9%Pennsylvania3.07%Rhode Island5.99%South Carolina6.2%South Dakotano taxTennesseeno taxTexasno taxUtah4.55%Vermont8.75%Virginia5.75%Washingtonno taxWest Virginia5.12%Wisconsin7.65%Wyomingno tax
Rates are approximate 2025-2026 estimates and graduated states are shown at the top marginal rate. This is educational, not tax advice. Confirm your situation with a qualified tax professional.