Vermont State Tax on Lottery Winnings
Free Vermont lottery tax calculator for Powerball and Mega Millions. Vermont taxes lottery winnings at 8.75% (top marginal rate).
Current Powerball $516M jackpot, single filer
$115.38M
Actual take-home: 22.4% of what they advertise
What You'd Actually Take Home.
Lottery Tax Calculator for Powerball, Mega Millions, and Every State.
Pick your game, state, and filing status to see what you'd really keep after taxes.
Standard deduction: $16,100. All lottery income is taxed at your individual rate. This is the most common filing status for winners.
Know What a Big Lottery Jackpot Is Really Worth.
The jackpot is $516M right now. Get occasional jackpot updates showing the advertised prize, estimated lump-sum cash value, and estimated take-home after federal and state taxes.
Free to join. No spam. Unsubscribe anytime. We never sell your email.
From Advertised to Deposit, Line by Line.
Every row updates as you change the controls above. Sources cited inline.
Browse by stateAll 50 States + DC, Ranked by Lottery Tax Bite.
10 states · no lottery taxHighest: Hawaii, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Washington DC
All 50 States + DC, Ranked by Lottery Tax Bite.
Click any tile to see that state's full breakdown. Green = no state lottery tax. Red = top-bracket states.
What to Know Before Claiming a Jackpot in Vermont
Vermont taxes lottery winnings at a top rate of 8.75%, one of the higher rates in the country, and a jackpot lump sum sits well into that bracket. There is no anonymity. A Vermont Lottery winner's name and town are public record, though some winners claim through a trust. You have a full year, 365 days, to claim, and a Powerball, Mega Millions, or Megabucks jackpot must be claimed in person at Lottery headquarters in Berlin. Every dollar of Vermont Lottery profit is transferred by law to the state Education Fund for public schools.
- State tax rate (2026)
- 8.75% top rate
- Deadline to claim
- 365 calendar days from the drawing date
- Anonymity
- Not available. A winner's name and town are public record. Some winners claim through a trust for a layer of privacy
- Where jackpots are claimed
- In person at Vermont Lottery headquarters in Berlin for a Powerball, Mega Millions, or Megabucks jackpot
- What proceeds fund
- Public education. By statute all Vermont Lottery net profit goes to the state Education Fund, $35.1 million in fiscal 2024
Sources: Tax Foundation: Vermont (2026 top rate 8.75%) · Vermont Lottery: What If I Win · Vermont Lottery: Giving Back · Vermont Statutes: 31 V.S.A. Chapter 14 (State Lottery)
Vermont Lottery Winnings Tax Overview
The Vermont state tax on lottery winnings is 8.75%, which sits in the upper tier among states that collect a lottery tax. Ranked number 10 out of 41 taxed states, Vermont pulls a meaningful cut from any Powerball or Mega Millions payout before the federal lottery tax applies. The Vermont lottery tax calculator above breaks down every dollar of your potential lump sum prize, from the advertised jackpot to the final after tax number that lands in your account.
How the Vermont Lottery Payout Calculator Works
In Vermont, the lottery payout calculation begins with the lump sum cash option, which equals roughly 45% of the advertised jackpot. The IRS withholds 24% federal lottery tax at the moment of payout, but a Powerball or Mega Millions prize pushes the winner into the 37% top federal bracket, so additional federal tax comes due at filing. On top of that, Vermont taxes lottery winnings at 8.75% of the full lump sum. The lottery payout calculator above runs all of this math for you, using IRS 2026 brackets and the top marginal Vermont lottery tax rate.
How Vermont Compares to Other Lottery Tax States
Vermont's 8.75% lottery tax rate ranks number 10 out of 41 taxed states. States with a higher lottery tax rate than Vermont include Maine and Massachusetts. States with a lower rate include Wisconsin and Connecticut. For context, 10 states collect no lottery tax at all, which means a Powerball or Mega Millions winner in one of those states keeps an extra 8.75% of their lump sum compared to a winner in Vermont.
Vermont Lottery Tax FAQs
What is the Vermont state tax on lottery winnings?
Vermont taxes lottery winnings at a top marginal rate of 8.75%. This rate applies to the lump sum cash option from any Powerball or Mega Millions prize, and it is paid in addition to the federal lottery tax of up to 37% at the highest bracket. The lottery tax calculator above shows the exact dollar amount for any current jackpot.
Should I take the lump sum or annuity in Vermont?
Most Powerball and Mega Millions winners choose the lump sum cash option. In Vermont, both options face the same 8.75% state lottery tax rate, but the annuity spreads the tax across 30 years while the lump sum delivers the full cash value now. The lottery payout calculator above shows the lump sum after taxes; the annuity choice is a separate financial decision based on personal goals and investment return assumptions.
Does Vermont withhold tax on a lottery payout before payment?
The IRS withholds 24% federal lottery tax on any lottery prize above $5,000 before the winner ever sees the check. Vermont also withholds state tax at or near the 8.75% top rate at the moment of payout. The remaining federal balance, up to the 37% top bracket, then comes due in April when the winner files a federal return.
Can you stay anonymous if you win the lottery in Vermont?
No. Vermont treats a lottery winner's name and town of residence as public record, so a Powerball or Mega Millions jackpot winner should expect that information to be released. Some winners claim through a trust so that the trust name, rather than a person, appears in the announcement.