Payout and Lottery Taxes

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!

Federal Lottery Taxes on Winnings

PrizeFederal Tax Obligations
$0-$600No deductions
$600.01 – $5,000Winnings must be reported on federal income tax form
$5,000.01 and above24-37%, depending on prize amount

State Lottery Taxes

State WithholdingJurisdictionThreshold for State Tax
No state tax on lottery prizesCalifornia, Florida, New Hampshire, Puerto Rico, South Dakota, Tennessee, Texas, U.S Virgin Islands, Washington State, WyomingN/A
2.9%North Dakota$5,000
3.07%Pennsylvania$5,000
3.23%IndianaUndisclosed
4%Colorado, Ohio, Oklahoma, Virginia$5,000
4%Missouri$600
4.25%Michigan$5,000
4.95%Illinois$1,000
3-5%Mississippi3% 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%KentuckyUndisclosed
5-8%New Jersey5% for prizes above $10,000 and up to $500,000. 8% for prizes above $500,000
5.5%North CarolinaUndisclosed
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%IdahoUndisclosed
6.99%Connecticut$5,000 (or winnings of $600 or more that are at least 300 times the amount of the wager placed)
7%ArkansasUndisclosed
7%South Carolina$500
7.25%MinnesotaUndisclosed
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.

lottery taxes