Vermont tax on lottery and gambling winnings
Vermont taxes gambling and lottery winnings as income, at rates up to 8.75%. On a $1,000,000 lottery prize to a single filer with no other income the state takes about $81,157, and the winner keeps about $598,843 after federal tax as well.
Vermont income tax brackets for 2026
| Rate | Single: taxable income | Married filing jointly: taxable income |
|---|---|---|
| 3.35% | over $0 | over $0 |
| 6.60% | over $49,400 | over $82,500 |
| 7.60% | over $119,700 | over $199,450 |
| 8.75% | over $249,700 | over $304,000 |
What to know
Vermont taxes its residents on winnings from anywhere. If you won in another state as a non-resident, that state may tax the prize too, and your home state usually gives a credit for it. The federal tax is the same everywhere: see the 2026 federal rules, or compare every state.
Questions
Does Vermont tax lottery winnings?
Yes, as ordinary income at the state's 2026 rates, up to 8.75%.
How much tax is due on a $1 million prize in Vermont?
For a single filer with no other income, about $81,157 in state tax and $320,000 in federal tax, leaving about $598,843. The federal withholding of 24% covers only part of it.
State brackets from the Tax Foundation, federal from the IRS, 2026. Estimates, not tax advice. Methodology.
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