Minnesota Lottery
Minnesota Lottery Tax Calculator
Minnesota withholds 7.25% from lottery prizes over $5,000, but its top 2026 rate is 9.85% — so most large Minnesota winners still owe the state several percent of the prize at filing.
Verified · tax year 2026
Minnesota prize — results
Take-home
58.7% kept of $1,000,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $1,000,000 |
|---|---|
| Federal income tax | −$320,000 |
| Tax to Minnesota | $0 |
| Minnesota tax | −$92,805 |
| Local income tax | $0 |
| You keep | $587,195 |
| Federal withholding (24%) | −$240,000 |
|---|---|
| State withholding | −$72,500 |
| Check you receive | $687,500 |
| Still owed when you file | $100,305 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
Withholding versus the 9.85% bracket
Minnesota’s 2026 brackets reach 9.85% above $203,150 of taxable income for single filers and $337,930 for married couples filing jointly. A $1,000,000 prize to a single filer carries $92,805 of Minnesota tax; the Lottery’s 7.25% withholding is $72,500. The $20,305 difference is due with the return, together with the federal balance.
Brackets re-indexed every year
The Minnesota Department of Revenue recalculates its brackets annually for inflation and rounds them to the nearest $10; the 2026 table is already published for every filing status, including heads of household (9.85% above $270,060) and married filing separately (above $168,965). Non-resident aliens who win in Minnesota face 30% federal withholding plus the 7.25% state share.
Minnesota at a glance
| State income tax on winnings | Up to 9.85% |
|---|---|
| Rate table used | 2026 |
| Lottery | Minnesota Lottery |
| State withholding at claim | 7.25% over $5,000 |
What Minnesota winners should know
- Minnesota withholds 7.25% but taxes income above $203,150 (single) or $337,930 (joint) at 9.85% in 2026, so a big winner owes roughly 2.6% more at filing.
- Minnesota’s brackets are re-indexed every year and rounded to the nearest $10.
Minnesota sources
- Minnesota Income Tax Rates and Brackets — Income Tax Rates for 2026 — Minnesota Department of Revenue †
- Claim a Prize — Taxes/Withholding — Minnesota Lottery †
Agency: Minnesota Department of Revenue. † read through a browser session (why). How the math works.