![]() If your winnings exceed a certain threshold, federal and state taxes may be automatically withheld. Even if the winnings were piled into your sportsbook account balance and never withdrawn, they are taxable income. Yes, whether those came on sports bets, slot machines, pari-mutuels, poker or the lottery, those winnings are taxable. ![]() Are Gambling Winnings Taxable in Virginia? The state tax rate in Virginia ranges from 2% to 5.75%, which is the rate your gambling winnings are taxed. ![]() The effective tax rate is the actual percentage you pay after taking the standard deduction and other possible deductions. Marginal tax rate is the bracket your income falls into. It’s important to consider gambling winnings when preparing your taxes because those winnings, when added to your annual income, could move you into a higher tax bracket. Your tax rate depends on annual income and tax bracket. ![]() It also means having to pay taxes on those winnings. With the addition of Virginia online sports betting and brick-and-mortar casinos on the way, Virginia bettors have more opportunities to make winning bets and earn gambling profits than ever before. ![]()
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