Oregon Lottery
Oregon Lottery Tax Calculator
Oregon withholds 8% for the state on every lottery prize of $1,500 or more, but taxes income above $125,000 at 9.9% — so a large Oregon win leaves almost two percent more to pay.
Verified · tax year 2026
Oregon prize — results
Take-home
95.3% kept of $2,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $2,000 |
|---|---|
| Federal income tax | $0 |
| Tax to Oregon | $0 |
| Oregon tax | −$95 |
| Local income tax | $0 |
| You keep | $1,905 |
| Federal withholding (24%) | $0 |
|---|---|
| State withholding | −$160 |
| Check you receive | $1,840 |
| Still owed when you file | −$65 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
State tax starts at $1,500
Since a state law change effective January 1, 2018, the Oregon Lottery automatically withholds 8% Oregon tax from prizes of $1,500 or more. A $2,000 prize pays $1,840: $160 is held for Oregon and nothing for the IRS, because federal withholding begins only above $5,000. Video Lottery prizes get the 8% state withholding but no federal withholding at any size.
Big prizes meet the 9.9% bracket
Oregon’s 2026 withholding formulas put the brackets at 4.75% up to $4,550, 6.75% to $11,400, 8.75% to $125,000 and 9.9% above (married $9,100, $22,800 and $250,000). On a $1,000,000 prize Oregon tax is $97,244 against $80,000 withheld. Non-resident aliens face 30% federal withholding on every prize.
Oregon at a glance
| State income tax on winnings | Up to 9.9% |
|---|---|
| Rate table used | 2026 (DOR withholding formulas) |
| Lottery | Oregon Lottery |
| State withholding at claim | 8% at $1,500+ |
What Oregon winners should know
- Oregon withholds 8% starting at $1,500, but income above $125,000 (single) or $250,000 (joint) is taxed at 9.9%, so a jackpot owes about 1.9% more at filing.
- Video Lottery prizes get the 8% state withholding but no federal withholding.
Oregon sources
- Oregon Withholding Tax Formulas 2026 (150-206-436, rev. 12-31-25) — Oregon Department of Revenue
- Claim a Prize — Tax and Payout Information — Oregon Lottery †
Agency: Oregon Department of Revenue. † read through a browser session (why). How the math works.
Neighboring states
California · Idaho · Nevada · Washington