Winning on the lottery is definitely considered as a gambling winning which is taxable income. Have a look at our lottery taxes table and stay in the loop with the tax-knowledge.
Also – get ready for the next lottery draw and read our newest lottery articles and strategies about how to win the lottery and predicting the winning lottery numbers!
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Federal Lottery Taxes on Winnings
| Prize | Federal Tax Obligations |
|---|---|
| $0-$600 | No deductions |
| $600.01 – $5,000 | Winnings must be reported on federal income tax form |
| $5,000.01 and above | 24-37%, depending on prize amount |
State Lottery Taxes
| State Withholding | Jurisdiction | Threshold for State Tax |
|---|---|---|
| No state tax on lottery prizes | California, Florida, New Hampshire, Puerto Rico, South Dakota, Tennessee, Texas, U.S Virgin Islands, Washington State, Wyoming | N/A |
| 2.9% | North Dakota | $5,000 |
| 3.07% | Pennsylvania | $5,000 |
| 3.23% | Indiana | Undisclosed |
| 4% | Colorado, Ohio, Oklahoma, Virginia | $5,000 |
| 4% | Missouri | $600 |
| 4.25% | Michigan | $5,000 |
| 4.95% | Illinois | $1,000 |
| 3-5% | Mississippi | 3% for prizes from $600 to $5,000, 4% for prizes between $5,001 and $10,000, and 5% for prizes above $10,001 |
| 5% | Arizona, Iowa, Kansas, Louisiana, Maine, Massachusetts, Nebraska | $5,000 |
| 5% | Kentucky | Undisclosed |
| 5-8% | New Jersey | 5% for prizes above $10,000 and up to $500,000. 8% for prizes above $500,000 |
| 5.5% | North Carolina | Undisclosed |
| 5.75% | Georgia | $5,000 |
| 5.99% | Rhode Island | $5,000 |
| 6% | New Mexico, Vermont | $5,000 |
| 6.5% | West Virginia | $5,000 |
| 6.6% | Delaware | $5,000 |
| 6.9% | Montana | $5,000 |
| 6.92% | Idaho | Undisclosed |
| 6.99% | Connecticut | $5,000 (or winnings of $600 or more that are at least 300 times the amount of the wager placed) |
| 7% | Arkansas | Undisclosed |
| 7% | South Carolina | $500 |
| 7.25% | Minnesota | Undisclosed |
| 7.65% | Wisconsin | $2,000 |
| 8% | Oregon | $1,500 |
| 8.5% | Washington D.C | $5,000 |
| 8.75% | Maryland | $5,000 |
| 8.82% | New York | $5,000 |
Check the lottery jackpot records in United States.
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