Virginia lottery taxes: 5.75% owed, only 4% withheld
Rate checked on November 3, 2026 against the sources listed at the end of this page.
Virginia's income tax is graduated, but the top rate, 5.75%, starts at just $17,000 of income. Any sizeable lottery prize is taxed almost entirely at 5.75%.
The catch for winners is the withholding. Virginia's rules set lottery withholding at 4%, not 5.75%, so a big prize leaves a state tax balance on top of the federal one.
Take-home pay on a lump-sum prize in Virginia
The table applies the top federal rate of 37% plus 5.75% Virginia tax. Amounts are the cash (lump-sum) value you receive, not the advertised annuity jackpot.
| Cash prize | Federal (37%) | State | You keep |
|---|---|---|---|
| $1.00M | −$370,000 | −$57,500 | $572,500 |
| $10.00M | −$3.70M | −$575,000 | $5.72M |
| $100.00M | −$37.00M | −$5.75M | $57.25M |
| $500.00M | −$185.00M | −$28.75M | $286.25M |
| $1.00B | −$370.00M | −$57.50M | $572.50M |
Federal figure is the total owed at the top bracket. At claim time only 24% is withheld; the rest is due when you file. Smaller prizes can fall into lower brackets, so the real federal bill may be less.
The two gaps to plan for
A Virginia jackpot winner has two shortfalls between what is withheld and what is owed:
| Withheld at claim | Owed on a jackpot | Gap | |
|---|---|---|---|
| Federal | 24% | up to 37% | ≈ 13% |
| Virginia | 4% | 5.75% | 1.75% |
On a $10 million cash prize that is roughly $1.3 million federal and $175,000 Virginia still to pay. Set it aside before you spend anything.
Withholding rules
Under the Virginia Administrative Code (23VAC10-140-282), the Virginia Lottery withholds Virginia income tax at 4.0% on prizes over $5,000, and once that threshold is passed the whole prize is subject to withholding. Withholding is required for residents, part-year residents and all nonresident winners.
Nonresidents
Because withholding applies to all nonresident winners, someone from Maryland, North Carolina, Tennessee, Kentucky, West Virginia or Washington, D.C. who wins with a Virginia ticket will see Virginia tax withheld. Their home state may also tax the prize. See our North Carolina and Tennessee guides and ticket state vs home state.
Why the rate is stable
The 5.75% rate on income over $17,000 has applied since 1990, according to the Code of Virginia. That makes Virginia's lottery tax one of the most predictable in the country, though lawmakers can change it at any time.
Common questions
What is Virginia's tax rate on lottery winnings?
Up to 5.75%. The top bracket starts at $17,000, so a large prize is taxed at 5.75% on almost every dollar.
How much state tax does the Virginia Lottery withhold?
4% on prizes over $5,000, for residents and nonresidents. The rest of the 5.75% is due when you file.
How much of a $100 million cash prize would I keep in Virginia?
About $57.25 million after 37% federal and 5.75% state tax.