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!
Best Lottery Sites
1
Claim 2 bets for the price of one!
Offer for UK customers. Different sign-up offer applies by market.
Lottery Bet and Games Online at Lottoland.
UK’s Favourite Lottery Website!
Offer for UK customers. Different sign-up offer applies by market.
Lottery Bet and Games Online at Lottoland.
UK’s Favourite Lottery Website!
2
15% Discount for New Players. Play the Lottery Online with Official Tickets
TheLotter representatives will purchase official tickets on your behalf.
TheLotter representatives will purchase official tickets on your behalf.
3
Get 3 Powerball Lines for the Price of 1
Register at Lottofy & Claim Your Welcome Offer!
Register at Lottofy & Claim Your Welcome Offer!
4
NEW CUSTOMERS
2 for 1 MegaMillions
WinTrillions accepts various payment options including Bitcoin. Register & Claim Your Welcome Offer!
2 for 1 MegaMillions
WinTrillions accepts various payment options including Bitcoin. Register & Claim Your Welcome Offer!
5
NEW CUSTOMERS
2 for 1 Powerball
LottoKings offers you discounts on the purchase of multiple prints and subscriptions.
2 for 1 Powerball
LottoKings offers you discounts on the purchase of multiple prints and subscriptions.
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.
Table of Contents
