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WinningsTax

Casino and slots winnings tax in Vermont

Vermont taxes slot machine winnings as ordinary income at graduated rates from 3.35% to 8.75%.

Updated · 2026 tax rules · How we calculate

$
$
$
More options
$

You keep

$4,146

Cash at payout

$5,000

Total tax

$854

Due when you file

$854

Form W-2G
Yes

$5,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.

Federal withholding at payout
$0

Casino and slots winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file. If you don't give the payer your Social Security number, 24% backup withholding applies.

Federal tax on the winnings
$600

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 12% bracket.

State tax
$254

Vermont taxes gambling winnings as ordinary income.

Still to pay when you file
$854

Tax owed ($854) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.

You keep
$4,146

$5,000 minus $854 in federal and state tax: an effective rate of 17.1%.

An estimate for 2026, not tax advice. It treats this win as your only gambling income for the year and leaves out local income taxes. Nothing you enter leaves your browser.

The rules

Vermont tax
Vermont taxes slot machine winnings as ordinary income at graduated rates from 3.35% to 8.75%.[1]Unverified
Federal tax form
Slot machine and bingo winnings of $2,000 or more are reported on a W-2G, without subtracting the wager. The threshold was $1,200 before 2026. Keno is also $2,000, after subtracting the wager on the winning game.[2]
Federal withholding
Slot machine, keno and bingo winnings are exempt from regular gambling withholding by statute, whatever the amount.[4]
Vermont withholding
No Vermont withholding requirement for slot machine winnings. Tax is due when you file.[5]Unverified
Gambling losses
No. Vermont starts at federal AGI and allows only its own standard deduction, so gambling losses you itemize federally don't carry over.[7]Unverified
Visitors
Vermont taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[8]
Where to play
Vermont has no casinos. Winnings from a casino trip to another state are still taxable here.[9]Unverified

What you keep at different amounts

For a single filer with $60,000 of other income and no gambling losses, living and winning in Vermont.

WonW-2GWithheldFederal taxState taxYou keep
$1,500No$0$180$50$1,270
$2,000Yes$0$240$67$1,693
$5,000Yes$0$600$254$4,146
$10,000Yes$0$1,550$584$7,866
$100,000Yes$0$22,114$6,797$71,089

Questions

How much is Vermont tax on slot machine winnings?
Vermont taxes slot machine winnings as ordinary income at graduated rates from 3.35% to 8.75%.[1]Unverified
Does Vermont withhold tax from slot machine winnings?
Vermont has no withholding requirement for slot machine winnings. Tax is due when you file.[5]Unverified
Do visitors pay Vermont tax on slot machine winnings?
Vermont taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[8]

More for Vermont

All of Vermont's gambling tax rules · Casino and slots in every state

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
  3. [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
  4. [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
  5. [5] Vermont Lottery, What If I Win · checked September 22, 2026
  6. [6] 32 V.S.A. § 5841 · checked September 22, 2026
  7. [7] Vermont 2025 Form IN-111 Instructions · checked September 22, 2026
  8. [8] 32 V.S.A. § 5823 · checked September 22, 2026
  9. [9] Vermont Act 63 of 2023 (sports wagering), as enacted · checked September 22, 2026