Vermont Sports Betting Tax Calculator
Vermont taxes gambling winnings as ordinary income at graduated brackets (varies by income). Sports betting is legal (online only) in Vermont with operators including FanDuel, DraftKings. Vermont launched online sports betting in January 2024. Online only.
Calculate Your Vermont Sports Betting Tax
2026 rules: 90% loss deduction cap applies (OBBBA)
Your salary, wages, and other non-gambling income
Losses can only be deducted if you itemize deductions
You cannot deduct gambling losses with the standard deduction. Switch to itemized to deduct losses.
Tax Breakdown
W-2G Form: Likely Required
Your total winnings of $10,000 exceed the $2,000 W-2G threshold for 2026. Individual wins that also meet the 300:1 odds requirement may trigger a W-2G form. Use our W-2G Checker for precise results.
Federal Withholding
$2,400 (24%) would be withheld at the time of payout. You may be due a refund of $1,200.
Vermont Gambling Tax Key Facts
- ✓State income tax: graduated brackets (varies by income)
- ✓Sports betting: legal (online only)
- ✓Available sportsbooks: FanDuel, DraftKings
- ✓Gambling loss deductions ARE allowed (must itemize)
- ✓Online only — no retail sportsbooks
How Sports Betting Taxes Work in Vermont
Vermont taxes gambling winnings as ordinary income through graduated tax brackets. Your gambling winnings are added to all other income and taxed accordingly.
Vermont allows gambling loss deductions following federal rules. Under the 2026 OBBBA, losses are deductible at 90% (capped at the amount of winnings) when itemizing deductions.
Vermont Allows Gambling Loss Deductions
Vermont follows federal rules for gambling loss deductions. The 2026 OBBBA 90% cap applies when itemizing.
Vermont Tax Example
A single filer in Vermont earning $60,000 with $10,000 in sports betting winnings and no losses
Licensed Sportsbooks in Vermont
You must be physically located within Vermont to place bets on these platforms.
How Vermont Compares to Neighboring States
Recent Vermont Gambling Tax Changes
Vermont launched online sports betting in January 2024. Online only.
Vermont Sports Betting Tax FAQ
How much tax do I pay on sports betting winnings in Vermont?
Vermont taxes gambling winnings at graduated brackets (varies by income) on top of federal tax (10-37%). Your total combined tax rate depends on your income level and filing status.
Is sports betting legal in Vermont?
Yes, sports betting is legal (online only) in Vermont. Licensed operators include FanDuel, DraftKings. You must be physically located within Vermont borders to place bets.
Can I deduct gambling losses in Vermont?
Yes, Vermont allows gambling loss deductions following federal rules. You must itemize deductions, and losses are limited to the amount of your winnings. The 2026 OBBBA 90% cap applies.
Vermont Tax Authority
For official tax guidance specific to Vermont, contact the state tax authority:
https://tax.vermont.gov/↗Calculate Your Vermont Sports Betting Taxes
Use our free calculator above to see exactly what you owe in Vermont.
Full Tax Calculator