VIRGINIA LOTTERY TAX · TAX YEAR 2026
Virginia lottery tax calculator
Virginia taxes lottery winnings as income, at rates from 2% to 5.75%. On a $1,000,000 prize with $75,000 of wages, a single filer owes $57,500 of Virginia tax and $340,080 of federal income tax, $397,580 in all, and keeps $602,420.
Tax on your prize
- Total tax on the prize
- $397,580.25
- Federal income tax
- $340,080.25
- Virginia tax
- $57,500.00
- After-tax prize
- $602,419.75
- Effective rate
- 39.76%
- Federal withholding at 24%
- $240,000.00
- Virginia withholding at 4% (2026)
- $40,000.00
- Still owed at tax time
- $117,580.25
Virginia tax by size of prize
What a single filer with $75,000 of wages owes on a prize, and what Virginia withholds from it.
| Prize | Federal tax | State tax | State withholding |
|---|---|---|---|
| $10,000 | $2,200 | $575 | $400 |
| $100,000 | $23,064 | $5,750 | $4,000 |
| $1 million | $340,080 | $57,500 | $40,000 |
| $10 million | $3,670,080 | $575,000 | $400,000 |
Virginia lottery tax questions
Does Virginia tax lottery winnings?
Yes. Virginia taxes lottery winnings as income, at rates from 2% to 5.75%.
How much tax is due on a $1,000,000 lottery prize in Virginia?
A single filer with $75,000 of wages owes $340,080 of federal income tax and $57,500 of Virginia tax on a $1,000,000 prize, $397,580 in all, and keeps $602,420. On a $100,000 prize, Virginia tax is $5,750 and federal tax $23,064.
How much is withheld from a Virginia lottery prize?
Virginia withholds 4% for state tax and 24% for federal tax from a prize over $5,000. On a $1,000,000 prize, $280,000 is withheld against $397,580 of tax, leaving $117,580 to pay at tax time.
What the calculator leaves out
Federal tax stacks the prize on wages after the 2026 standard deduction and taxes it at the ordinary brackets. Withholding treats the whole prize as winnings, though the IRS tests winnings minus the wager. The calculator takes the cash received this year: a lump sum is taxed in full the year it is paid, and annuity payments are taxed each year as they are received. Gambling losses are left out; only filers who itemize can deduct them, and from 2026 only up to 90% of losses. Tax another state may charge on a ticket bought there is left out.