Arkansas Scholarship Lottery
Arkansas Lottery Tax Calculator
The Arkansas Scholarship Lottery withholds 3.7% from prizes over $5,000, which matches the top of the state’s 2026 rate table almost to the dollar on a large win.
Verified · tax year 2026
Arkansas prize — results
Take-home
78% kept of $200,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $200,000 |
|---|---|
| Federal income tax | −$36,734 |
| Tax to Arkansas | $0 |
| Arkansas tax | −$7,320 |
| Local income tax | $0 |
| You keep | $155,946 |
| Federal withholding (24%) | −$48,000 |
|---|---|
| State withholding | −$7,400 |
| Check you receive | $144,600 |
| Still owed when you file | −$11,346 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
One table for everyone
Arkansas does not widen its brackets for married couples. The Department of Finance and Administration’s formula for 2026 runs from 0% on the first $5,599 of net income, through 2%, 3% and 3.4%, to 3.7% — and above $97,600 it becomes 3.7% of income minus a $79.90 adjustment. A married couple and a single winner therefore pay the same Arkansas tax on the same prize.
On a $200,000 prize claimed by a single filer with no other income, the formula produces $7,320 of Arkansas tax. The Lottery’s 3.7% withholding was $7,400, so the difference at filing is only a few dollars. The federal return is another story: $36,734 of federal tax against $48,000 withheld.
Jackpots in Arkansas
Mega Millions and Powerball jackpots won in Arkansas are paid either as a single cash payment or in 30 annual installments, and the Lottery withholds federal and state tax from whichever option you choose. Under the annuity, each year’s payment is taxed in the year it arrives, so the Arkansas table is applied thirty separate times — but with a 3.7% top rate that changes little for a large prize.
Arkansas at a glance
| State income tax on winnings | Up to 3.7% |
|---|---|
| Rate table used | 2026 (DFA withholding formula table) |
| Lottery | Arkansas Scholarship Lottery |
| State withholding at claim | 3.7% over $5,000 |
What Arkansas winners should know
- Arkansas has one rate table for every filing status — there are no wider joint brackets — so a married couple’s prize is taxed on the same table as a single filer’s.
- Above $97,600 of net income the 2026 table is a flat 3.7% minus a $79.90 adjustment, which is why the Lottery’s 3.7% withholding lands almost exactly on the final bill for a large prize.
Arkansas sources
- Withholding Tax Formula Method, effective 01/01/2026 — Arkansas Department of Finance and Administration
- Claim Your Prize — Arkansas Scholarship Lottery †
Agency: Arkansas DFA — Income Tax. † read through a browser session (why). How the math works.
Neighboring states
Louisiana · Mississippi · Missouri · Oklahoma · Tennessee · Texas