Does Virginia tax lottery winnings?
Yes. Virginia taxes lottery prizes as ordinary income, at rates up to 5.75% in 2026. Virginia withholds 4% for state tax when the prize is paid. Withholding is a prepayment: most of a large prize is taxed at the top rate of 5.75%, so expect to pay the difference when you file.
Source: Virginia Lottery (“4% for state taxes”), checked October 1, 2026.
The top Virginia rate does not apply to the whole prize
On $1 million, the modeled schedule taxes the first $3,000 at 2%, the next $2,000 at 3%, the next $12,000 at 5%, and the remaining $983,000 at 5.75%. That gives $57,243 before Virginia deductions, exemptions and credits. With federal tax, the model leaves $622,757. Lower prizes are more sensitive to the omitted state deductions.
For comparison, a $10,000 cash prize on top of $60,000 of other income adds $1,550 in federal tax and $575 in modeled Virginia tax, leaving $7,875 from the prize. The estimate subtracts tax on the existing income so that only the prize’s additional tax is charged.
Illustrative 2026 calculation, not a reported payout. Rule source. Model assumptions and corrections.
Virginia Powerball payout after taxes
A single winner living in Virginia who takes the cash option on the $674 Million Powerball jackpot keeps about $162,583,007, after about $104,993,000 in federal tax and $16,323,993 in Virginia tax. Recalculated daily.
| Game | Virginia tax (lump sum) | Lump sum take-home | Annuity take-home (30 payments) |
|---|---|---|---|
| Powerball$674 Million jackpot · $283.9 Million cash | $16,323,993 | $162,583,007 | $387,372,714 |
| Mega Millions$443 Million jackpot · $186.5 Million cash | $10,723,493 | $106,821,507 | $255,125,217 |
How much is $1 million after taxes in Virginia?
About $622,757. A single filer with no other income pays about $320,000 in federal tax and $57,243 in Virginia tax on a $1,000,000 prize. When you claim, $280,000 is withheld, and the rest of the tax is due when you file.
| Prize (cash) | Federal tax | Virginia tax | Take-home |
|---|---|---|---|
| $1,000,000 | $320,000 | $57,243 | $622,757 |
| $2,000,000 | $690,000 | $114,743 | $1,195,257 |
| $10,000,000 | $3,650,000 | $574,743 | $5,775,257 |
| $100,000,000 | $36,950,000 | $5,749,743 | $57,300,257 |
| $1,000,000,000 | $369,950,000 | $57,499,743 | $572,550,257 |
Lump sum, single filer with no other income, 2026 federal and Virginia rates. A $2,000,000 prize is the Powerball or Mega Millions match-5 prize with the multiplier. Smaller prizes and other states: lottery winnings after taxes by amount.
Claiming in Virginia: 180 days, and withholding starts above $5,000
- Virginia draw-game tickets expire 180 days after the drawing (Virginia Lottery).
- Prizes over $600 are claimed at a Virginia Lottery customer service center or prize zone, or by mail to Virginia Lottery Claims, P.O. Box 1254, Richmond; prizes up to $5,000 can also be claimed in the Virginia Lottery app (Virginia Lottery).
- Withholding starts above $5,000: the Virginia Lottery takes 24% for federal and 4% for state tax automatically, and reports every prize over $600 to both tax agencies (Virginia Lottery).
Can you stay anonymous in Virginia?
Yes. Since July 1, 2026, identifying information for all prize winners requires written consent before release; no prize-size threshold (source). The guide to what to do if you win the lottery compares the rules in every state.
Virginia compared with neighboring states
$674 Million Powerball jackpot, lump sum, by state of residence. A winner living in Tennessee keeps $16,323,993 more than a Virginia resident, and one living in Washington, D.C. keeps $14,179,282 less.
| State of residence | State & local tax | Lump sum take-home |
|---|---|---|
| Tennessee | $0 | $178,907,000 |
| Kentucky | $9,936,500 | $168,970,500 |
| North Carolina | $11,327,610 | $167,579,390 |
| West Virginia | $13,683,142 | $165,223,858 |
| Virginia | $16,323,993 | $162,583,007 |
| MarylandIncludes average county tax | $27,142,505 | $151,764,495 |
| Washington, D.C. | $30,503,275 | $148,403,725 |
Hypothetical residence-tax comparison only. Tax imposed by the ticket-selling state and credits for tax paid elsewhere are excluded; this is especially important for residents of states without lottery sales. Taxes on lottery winnings explains what happens when you buy in another state.
Estimates for a single filer with no other income unless noted. Formulas and sources: methodology. Every state's rates: lottery tax by state.