Guide
Lottery Tax Withholding by State
The 24% the lottery holds back is a down payment, not the tax. On any prize above about $200,000 the federal bill is higher, and in most states the state withholding is lower than the state tax too.
Published and verified · Jackpot Tax Calc Editorial Team
Federal: 24% at the window, up to 37% on the return
The IRS W-2G instructions (January 2026) require 24% regular gambling withholding when lottery winnings minus the wager are more than $5,000. The final tax uses the 2026 brackets in Rev. Proc. 2025-32, which reach 37% above $640,600 of taxable income for a single filer. For someone with no other income, the gap looks like this:
| Prize | Withheld (24%) | Federal tax | Still owed |
|---|---|---|---|
| $10,000 | $2,400 | $0 | −$2,400 |
| $100,000 | $24,000 | $13,170 | −$10,830 |
| $1,000,000 | $240,000 | $320,000 | $80,000 |
| $10,000,000 | $2,400,000 | $3,650,000 | $1,250,000 |
A negative “still owed” means a refund: small prizes are over-withheld for a filer with no other income. Large prizes are always under-withheld. Paying the difference as estimated tax for the quarter of the win avoids an underpayment penalty; non-resident aliens are withheld 30% instead.
States: different rates, different triggers
State withholding follows each state’s statute or lottery rule, and several start well below the federal $5,000 line: Illinois ($1,000 or more), Indiana (over $1,200), Iowa (over $600), Massachusetts ($600 or more), Mississippi ($600 or more), Missouri (over $600), Ohio ($2,000 or more), Oregon ($1,500 or more), Wisconsin ($2,000 or more). Others withhold nothing because the prize is untaxed (California’s own lottery) or there is no income tax. A few lotteries do not publish their percentage; this site says so rather than guessing.
| Lottery state | State withholding |
|---|---|
| Arizona | 2.5% over $5,000 |
| Arkansas | 3.7% over $5,000 |
| California | None |
| Colorado | 4% over $5,000 |
| Connecticut | 6.99% over $5,000 |
| Delaware | None |
| District of Columbia | 10.75% over $5,000 |
| Florida | None |
| Georgia | 4.99% over $5,000 |
| Idaho | 5.3% over $5,000 |
| Illinois | 4.95% at $1,000+ |
| Indiana | Rate not published |
| Iowa | 3.8% over $600 |
| Kansas | 5% over $5,000 |
| Kentucky | Rate not published |
| Louisiana | 3% at $5,000+ |
| Maine | 7.15% over $5,000 |
| Maryland | 9.5% over $5,000 |
| Massachusetts | 5% at $600+ |
| Michigan | 4.25% over $5,000 |
| Minnesota | 7.25% over $5,000 |
| Mississippi | Rate not published |
| Missouri | 4% over $600 |
| Montana | 5.9% over $5,000 |
| Nebraska | 3.5% over $5,000 |
| New Hampshire | None |
| New Jersey | 5% ($10,001–$500,000) · 8% (over $500,000) |
| New Mexico | Rate not published |
| New York | Rate not published |
| North Carolina | Rate not published |
| North Dakota | 2.5% over $5,000 |
| Ohio | 2.75% at $2,000+ |
| Oklahoma | Rate not published |
| Oregon | 8% at $1,500+ |
| Pennsylvania | 3.07% over $5,000 |
| Rhode Island | Rate not published |
| South Carolina | Rate not published |
| South Dakota | None |
| Tennessee | None |
| Texas | None |
| Vermont | 6% over $5,000 |
| Virginia | 4% over $5,000 |
| Washington | None |
| West Virginia | Rate not published |
| Wisconsin | 7.65% at $2,000+ |
| Wyoming | None |
Where the state gap is largest
The biggest shortfalls are in states whose lottery withholds less than the top rate: Massachusetts (5% withheld, up to 9% owed with the surtax), Vermont (6% vs 8.75%), Minnesota (7.25% vs 9.85%), Virginia (4% vs 5.75%), New Jersey (8% vs 10.75%) and Oregon (8% vs 9.9%). In Montana it runs the other way: 5.9% is withheld against a 5.65% top rate. Delaware withholds no state tax at all even though its prizes are taxable.
Out-of-state winners are withheld by the selling state; the other-state guide explains how the home state treats that payment.