Hoosier Lottery
Indiana Lottery Tax Calculator
Indiana taxes a lottery prize at the 2026 state rate of 2.95% plus your county’s local income tax — and the Hoosier Lottery begins withholding state tax on prizes over $1,200.
Verified · tax year 2026
Indiana prize — results
Take-home
65.1% kept of $1,000,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $1,000,000 |
|---|---|
| Federal income tax | −$320,000 |
| Tax to Indiana | $0 |
| Indiana tax | −$29,500 |
| Local income tax | $0 |
| You keep | $650,500 |
| Federal withholding (24%) | −$240,000 |
|---|---|
| State withholding | not published |
| Check you receive | $760,000 |
| Still owed when you file | $109,500 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
State plus county
Indiana’s Departmental Notice #1 sets the 2026 state adjusted gross income tax rate at 2.95%. Every county then adds its own local income tax for residents, and the notice lists each county’s rate. Enter yours in the local-rate box; without it, the figures here cover the state tax only. On a $1,000,000 prize the state portion is $29,500; every 1% of county rate adds another $10,000.
What the Hoosier Lottery takes at claim
The Hoosier Lottery’s winner guide says it withholds the minimum required state tax on winnings over $1,200 and federal tax when the winnings minus the wager exceed $5,000. The guide does not print the rate, so the calculator shows Indiana withholding as “not published” rather than guessing. Ask the claim center for the figure on your W-2G.
Players from Illinois, Michigan, Ohio and Kentucky regularly cross into Indiana; their own states decide whether the Indiana tax is creditable.
Indiana at a glance
| State income tax on winnings | Up to 2.95% |
|---|---|
| Rate table used | 2026 |
| Lottery | Hoosier Lottery |
| State withholding at claim | Rate not published |
| Local tax | Indiana county income tax rate |
What Indiana winners should know
- Indiana’s 2026 state rate is 2.95%, and every Indiana county adds its own local income tax for residents (rates are listed in Departmental Notice #1) — enter yours to include it.
- Hoosier Lottery withholding of state tax starts above $1,200, well under the $5,000 federal trigger.
Indiana sources
- Departmental Notice #1 (effective Oct. 1, 2026) — Indiana Department of Revenue
- Winner Resource Guide — Hoosier Lottery †
Agency: Indiana Department of Revenue. † read through a browser session (why). How the math works.