Rhode Island Lottery
Rhode Island Lottery Tax Calculator
Rhode Island taxes a large lottery prize at its 5.99% top rate in 2026, and a new surtax on income over $1 million begins in 2027 — 1% that year, rising to 3% by 2029.
Verified · tax year 2026
Rhode Island prize — results
Take-home
62% kept of $1,000,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $1,000,000 |
|---|---|
| Federal income tax | −$320,000 |
| Tax to Rhode Island | $0 |
| Rhode Island tax | −$59,900 |
| Local income tax | $0 |
| You keep | $620,100 |
| Federal withholding (24%) | −$240,000 |
|---|---|
| State withholding | not published |
| Check you receive | $760,000 |
| Still owed when you file | $139,900 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
A surtax that matters for annuities
The fiscal 2027 budget (H 7127 Sub A, Article 6) adds a high-income surtax on personal income above $1 million: 1% for tax year 2027, 2% for 2028 and 3% from 2029, for every filing status, with the threshold indexed. A 2026 lump sum escapes it entirely. A jackpot annuity does not: every annual payment from 2027 on that pushes income past the threshold will carry the surtax.
For 2026 this calculator applies the 5.99% top rate to the whole prize — $59,900 on $1,000,000 — and labels it an upper bound, because Rhode Island’s indexed 2026 bracket thresholds could not be retrieved from the Division of Taxation today.
Withholding
The Rhode Island Lottery says it meets all state and federal withholding requirements and may collect tax documentation and withhold offsets, but it does not publish the percentage. Massachusetts and Connecticut residents who buy in Rhode Island should expect their own state’s tax at home as well.
Rhode Island at a glance
| State income tax on winnings | Top rate 5.99% |
|---|---|
| Rate table used | Top rate (2026 indexed thresholds not retrievable today) |
| Lottery | Rhode Island Lottery |
| State withholding at claim | Rate not published |
| Scheduled change | A new high-income surtax adds 1% on personal income over $1 million for 2027, 2% for 2028 and 3% from 2029, for every filing status. |
What Rhode Island winners should know
- Rhode Island’s FY2027 budget creates a surtax on income above $1 million starting with tax year 2027 — a jackpot claimed in 2027 or later faces up to 6.99%, rising to 8.99% by 2029.
Rhode Island sources
- Summary of Legislative Changes 2026 — Rhode Island Division of Taxation
Agency: Rhode Island Division of Taxation. † read through a browser session (why). How the math works.