Vermont Lottery Tax Calculator - 9% State Tax

The Vermont state income tax rate on lottery winnings in 2026 is 9%. Calculate your exact take-home amount from any Vermont lottery game after federal and state taxes.

Vermont State Income Tax: 9%

In addition to federal taxes, Vermont residents owe 9% state tax on lottery winnings.

Winning Amount

Advertised Jackpot

Payout Type

Cash Value Factor (%)

60%

Your Take-Home (After All Taxes)

$162,000,000

Effective Tax Rate: 46.0% (Federal 37% + State 9%)

Lump Sum Amount

$300,000,000

(60% of advertised)

Fed Withholding

$72,000,000

24% immediate

Additional Federal Tax

$39,000,000

Tax gap (37% - 24%)

Vermont State Tax

$27,000,000

9% estimated state tax rate

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Disclaimer: All calculators on this website are provided for informational and illustrative purposes only. The results do not constitute professional advice (including legal, tax, financial, medical, or other advice). Despite careful programming, we assume no liability for the accuracy, completeness, or timeliness of the results. For matters requiring professional advice, we recommend consulting an appropriate specialist (e.g., a tax advisor, lawyer, accountant, or physician).

How Vermont Lottery Taxes Work

Vermont residents face one of the steepest state lottery tax rates: 9%. Combined with federal (37%), this creates a substantial burden.

Vermont Tax Calculation

Lump Sum = Advertised × 60%. Federal Tax = Lump Sum × 37%. State Tax = Lump Sum × 9%. Take-Home = Lump Sum - (Federal + State Tax).

Key Terms

Lump Sum

60% of advertised jackpot (cash value estimate)

Federal Withholding

24% taken by lottery immediately

Tax Gap

Difference between 24% withheld and 37% owed federally

State Tax

Vermont state income tax: 9%

Vermont State Income Tax Rate on Lottery Winnings 2026 Calculator

The Vermont state income tax rate on lottery winnings 2026 is 9%. This calculator shows you your exact after-tax take-home from Powerball, Mega Millions, and other Vermont lottery games, including both federal and state taxes.

Vermont's 9% Lottery Tax

Vermont imposes 9% on lottery winnings, one of the highest rates nationally. On $60M, that's $5.4M in state taxes.

Total Tax Burden

Federal 37% + Vermont 9% = 46%. With federal gap, typically 43-46% total. Among the highest rates nationally.

Green Mountain State

Vermont has a high-tax fiscal model.

Withholding

24% federal, 37% actual, plus 9% Vermont.

Lump Sum vs Annuity

9% for both. Annuity spreads 46% combined burden.

Regional Context

Vermont's 9% is among the highest in New England.

Tax Planning Critical

With 46% combined rate, professional planning essential.

Vermont Games

Powerball, Mega Millions taxed at 9%.

Vermont Lottery Tax FAQ

Q:Vermont's tax rate?

9%—one of the highest nationally.

Q:Total tax?

Federal 37% + Vermont 9% = 46%, typically 43-46% total.

Q:Lump sum vs annuity?

Both taxed at 9%. Annuity helps spread burden.

Q:Move after?

If claimed in Vermont, 9% applies to that win.

Q:Among Northeast?

Vermont 9% is high for region.

Q:Revenue?

Vermont lottery supports state education.

Q:Compared to New Hampshire?

Vermont 9% vs NH 0%. NH saves $5.4M on $60M win.