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WinningsTax

Sports betting winnings tax in Virginia

Virginia taxes sports betting winnings as ordinary income at graduated rates from 2% to 5.75%.

Updated · 2026 tax rules · How we calculate

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$
$
$
More options
$

You keep

$7,875

Cash at payout

$7,600

Total tax

$2,125

Over-withheld

$275

Form W-2G
Yes

$10,000 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
$2,400

The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.

Federal tax on the winnings
$1,550

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.

State tax
$575

Virginia taxes gambling winnings as ordinary income.

Over-withheld
$275

More was withheld than these winnings add to your tax. The difference reduces what you owe on the rest of your return, or comes back as a refund.

You keep
$7,875

$10,000 minus $2,125 in federal and state tax: an effective rate of 21.3%.

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 sports betting winnings as ordinary income at graduated rates from 2% to 5.75%.[1]
Federal tax form
Sports betting winnings are reported on a W-2G when they are $2,000 or more (after subtracting the wager) and at least 300 times the wager. The threshold was $600 before 2026.[2]
Federal withholding
24% is withheld from sports betting winnings of more than $5,000, but only when the win is also at least 300 times the wager.[2]
Virginia withholding
No Virginia withholding requirement for sports betting 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 sports betting winnings won there, so visitors may need to file a nonresident return.[8]
Where to play
Sports betting in Virginia: legal online and in person. Winnings from a bet placed in another state are taxable here all the same.[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
$2,000No$0$240$115$1,645
$10,000Yes$2,400$1,550$575$7,875
$100,000Yes$24,000$22,114$5,750$72,136

Assumes a $25 stake on this bet, so the 300x test is met at every amount shown.

Questions

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

More for Virginia

All of Virginia's gambling tax rules · Sports betting 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