Vermont Gambling Tax Calculator
This calculator provides estimates for informational purposes only. It is not tax advice. Tax laws change frequently and individual circumstances vary. Consult a qualified tax professional for advice specific to your situation. Tax rates and rules reflect 2026 tax year. Last updated April 2026.
Gambling tax in Vermont
Vermont taxes gambling winnings up to 8.75% and allows no state deduction for losses. That combination, a high ceiling applied to the gross winning column, makes it the harshest state treatment in this calculator for anyone betting volume.
Vermont at a glance
Vermont does not allow gambling loss deductions.
The worst of both structures at once
Two things make a state expensive for a bettor: a high rate, and a base that ignores losses. Most states have one or the other. Illinois taxes gross but only at 4.95%. Hawaii reaches 11% but lets losses offset winnings first. Vermont combines a top rate of 8.75% with a gross base, so a high-volume break-even season can produce a state bill that exceeds the profit several times over. If you bet size in Vermont, the state line is not a rounding item to check afterwards, it is a cost that belongs in the expected value calculation before the bet.
Vermont gambling tax FAQ
Does Vermont allow gambling loss deductions?
No. Vermont recognises no gambling loss deduction, so the state figure is calculated on gross winnings.
Can my Vermont tax exceed what I actually won for the year?
It can exceed your net profit, yes. The state taxes the winning column regardless of how much you lost against it.
Betting outside Vermont?
The main gambling tax calculator covers all 51 US jurisdictions, with the same federal brackets, the 90% loss deduction cap and the standard versus itemized comparison.
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