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WinningsTax

Casino and slots winnings tax in Virginia

Virginia taxes slot machine winnings as ordinary income at graduated rates from 2% to 5.75%.

Updated · 2026 tax rules · How we calculate

$
$
$
More options
$

You keep

$4,113

Cash at payout

$5,000

Total tax

$888

Due when you file

$888

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
$288

Virginia taxes gambling winnings as ordinary income.

Still to pay when you file
$888

Tax owed ($888) 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
$4,113

$5,000 minus $888 in federal and state tax: an effective rate of 17.8%.

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

Virginia tax
Virginia taxes slot machine winnings as ordinary income at graduated rates from 2% to 5.75%.[1]
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]
Virginia withholding
No Virginia withholding requirement for slot machine winnings. Tax is due when you file.[5]Unverified
Gambling losses
You can deduct losses, up to your winnings, only as an itemized deduction on Virginia Schedule A, and only if you itemized on your federal return.[7]Unverified
Visitors
Virginia taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[8]
Where to play
Virginia has casinos.[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 Virginia.

WonW-2GWithheldFederal taxState taxYou keep
$1,500No$0$180$86$1,234
$2,000Yes$0$240$115$1,645
$5,000Yes$0$600$288$4,113
$10,000Yes$0$1,550$575$7,875
$100,000Yes$0$22,114$5,750$72,136

Questions

How much is Virginia tax on slot machine winnings?
Virginia taxes slot machine winnings as ordinary income at graduated rates from 2% to 5.75%.[1]
Does Virginia withhold tax from slot machine winnings?
Virginia has no withholding requirement for slot machine winnings. Tax is due when you file.[5]Unverified
Do visitors pay Virginia tax on slot machine winnings?
Virginia taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[8]

More for Virginia

All of Virginia'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] Virginia Lottery, How To Claim a Prize · checked September 22, 2026
  6. [6] Virginia Income Tax Withholding Guide for Employers · checked September 22, 2026
  7. [7] Virginia 2025 Schedule A Instructions · checked September 22, 2026
  8. [8] Va. Code § 58.1-302, Income and deductions from Virginia sources · checked September 22, 2026
  9. [9] Virginia Lottery, Casinos and Sports Betting · checked September 22, 2026