Lottery winnings tax in West Virginia
West Virginia taxes lottery winnings as ordinary income at graduated rates from 2.11% to 4.58%.
Updated · 2026 tax rules · How we calculate
You keep
$37,367
Cash at payout
$35,710
Total tax
$12,633
Over-withheld
$1,657
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $2,283
- West Virginia withholding at payout
- $2,290
- Over-withheld
- $1,657
- You keep
- $37,367
$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.
West Virginia taxes gambling winnings as ordinary income.
West Virginia requires the payer to hold back 4.58% 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 $12,633 in federal and state tax: an effective rate of 25.3%.
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
- West Virginia tax
- West Virginia taxes lottery winnings as ordinary income at graduated rates from 2.11% to 4.58%.[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]
- West Virginia withholding
- West Virginia withholds 4.58% whenever federal tax is withheld.[5]
- Gambling losses
- You can subtract West Virginia gambling losses, up to your West Virginia gambling winnings, on Schedule M without itemizing on the state return. Losses from other states or unlawful gambling don't count.[6]Unverified
- Visitors
- West Virginia taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]Unverified
- Where to play
- West Virginia runs a state lottery.[8]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 West Virginia.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $63 | $1,257 |
| $2,000 | Yes | $0 | $240 | $84 | $1,676 |
| $10,000 | Yes | $2,858 | $1,550 | $451 | $7,999 |
| $50,000 | Yes | $14,290 | $10,350 | $2,283 | $37,367 |
| $100,000 | Yes | $28,580 | $22,114 | $4,573 | $73,313 |
Assumes a $2 ticket price, so the 300x test is met at every amount shown.
Questions
- How much is West Virginia tax on lottery winnings?
- West Virginia taxes lottery winnings as ordinary income at graduated rates from 2.11% to 4.58%.[1]
- Does West Virginia withhold tax from lottery winnings?
- West Virginia withholds 4.58% whenever federal tax is withheld.[5]
- Do visitors pay West Virginia tax on lottery winnings?
- West Virginia taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]Unverified
More for West Virginia
All of West Virginia's gambling tax rules · Lottery in every state
Sources
- [1] West Virginia Tax Division, Personal Income Tax Reduction Bill · 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] WV TSD 432, Gambling Withholding and Losses (Rev. June 2026) · checked September 22, 2026
- [6] W. Va. Code § 11-21-12n · checked September 22, 2026
- [7] W. Va. Code § 11-21-32 · checked September 22, 2026
- [8] W. Va. Code § 29-22E-2 (Lottery interactive wagering) · checked September 22, 2026
- [9] W. Va. Code § 29-22D-2 (Sports wagering) · checked September 22, 2026