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WinningsTax

Lottery winnings tax in District of Columbia

District of Columbia taxes lottery winnings as ordinary income at graduated rates from 4% to 10.75%.

Updated · 2026 tax rules · How we calculate

$
$
$
$
More options
$

You keep

$35,722

Cash at payout

$32,625

Total tax

$14,278

Over-withheld

$3,097

Form W-2G
Yes

$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.

Federal withholding at payout
$12,000

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
$10,350

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

State tax
$3,928

District of Columbia taxes gambling winnings as ordinary income.

District of Columbia withholding at payout
$5,375

District of Columbia requires the payer to hold back 10.75% for state tax.

Over-withheld
$3,097

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
$35,722

$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]
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.[7]

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.

WonW-2GWithheldFederal taxState taxYou keep
$1,500No$0$180$98$1,223
$2,000Yes$0$240$130$1,630
$10,000Yes$3,475$1,550$650$7,800
$50,000Yes$17,375$10,350$3,928$35,722
$100,000Yes$34,750$22,114$8,178$69,708

Assumes a $2 ticket price, so the 300x test is met at every amount shown.

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. [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] D.C. Code 47-1812.08(l) · checked September 22, 2026
  6. [6] DC 2025 D-40 Booklet (Calculation F; Line 17) · checked September 22, 2026
  7. [7] American Gaming Association, State of the States 2025 · checked September 22, 2026