Lottery winnings tax in District of Columbia
District of Columbia taxes lottery winnings as ordinary income at graduated rates from 4% to 10.75%.
On a $50,000 lottery win, $17,375 is withheld at payout. The tax comes to $14,278 ($10,350 federal and $3,928 District of Columbia), and you get $3,097 back when you file, so you keep $35,722. That's for a single filer with $60,000 of other income and no gambling losses.
Updated · 2026 tax rules · How we calculate
You keep
$35,722
Cash at payout
$32,625
Total tax
$14,278
Over-withheld
$3,097
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $3,928
- District of Columbia withholding at payout
- $5,375
- Over-withheld
- $3,097
- You keep
- $35,722
$50,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
District of Columbia taxes gambling winnings as ordinary income.
District of Columbia requires the payer to hold back 10.75% for state tax.
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.
$50,000 minus $14,278 in federal and state tax: an effective rate of 28.6%.
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
- District of Columbia tax
- District of Columbia taxes lottery winnings as ordinary income at graduated rates from 4% to 10.75%.[1]
- Federal tax form
- Lottery prizes of $2,000 or more that are at least 300 times the ticket price are reported on a W-2G. The threshold was $600 before 2026.[2]
- Federal withholding
- 24% is withheld from lottery prizes of more than $5,000 (minus the ticket price). No 300x test applies to lotteries.[4]
- District of Columbia withholding
- District of Columbia withholds 10.75% whenever federal tax is withheld.[5]
- Gambling losses
- You can deduct losses only if you itemize on your federal return, because DC requires the same deduction type as federal.[6] How the federal 90% loss rule works
- Visitors
- District of Columbia does not tax nonresidents on lottery winnings. Visitors owe tax to their home state instead.[6]
- Where to play
- District of Columbia runs a state lottery.[8]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in District of Columbia.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $98 | $1,223 |
| $2,000 | Yes | $0 | $240 | $130 | $1,630 |
| $10,000 | Yes | $3,475 | $1,550 | $650 | $7,800 |
| $50,000 | Yes | $17,375 | $10,350 | $3,928 | $35,722 |
| $100,000 | Yes | $34,750 | $22,114 | $8,178 | $69,708 |
Assumes a $2 ticket price, so the 300x test is met at every amount shown.
Records to keep for lottery winnings
Prizes are measured net of the ticket price. Nearly any prize large enough to report clears the 300x test.
Losses only count if you can prove them. For lottery winnings, the IRS suggests keeping:[7]
- Your ticket purchases, with dates, winnings and losses
- Unredeemed tickets, payment slips and winnings statements
All of this goes alongside the diary the IRS expects for every kind of gambling: keeping gambling records the IRS will accept.
Questions
- How much is District of Columbia tax on lottery winnings?
- District of Columbia taxes lottery winnings as ordinary income at graduated rates from 4% to 10.75%.[1]
- Does District of Columbia withhold tax from lottery winnings?
- District of Columbia withholds 10.75% whenever federal tax is withheld.[5]
- Do visitors pay District of Columbia tax on lottery winnings?
- District of Columbia does not tax nonresidents on lottery winnings. Visitors owe tax to their home state instead.[6]
More for District of Columbia
All of District of Columbia's gambling tax rules · Lottery in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
- [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [5] D.C. Code 47-1812.08(l) · checked September 22, 2026
- [6] DC 2025 D-40 Booklet (Calculation F; Line 17) · checked September 22, 2026
- [7] IRS, Publication 529, Miscellaneous Deductions · checked September 28, 2026