Federal and state tax for lottery winnings on lump sum and annuity payments in the USA
Most lottery winners want a lump sum payment immediately. Then, they can choose to invest it into a retirement plan or the other stock option to generate a return. The main benefit of a lump sum is getting complete access to the funds.
All individuals, accountants, economic advisors, wealth managers, and lawyers also love to take lump-sum amounts. The winner wants to take the whole amount because they can use it to buy stocks or a company.
Many monetary advisors suggest selecting the lump sum because you typically get a bigger return on investing lottery winnings in huge gain assets.
You can also get knowledge about the taxes applied to your winnings using a lottery tax calculator.
Alabama state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
Alaska state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
Arizona state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 5 %
Arkansas state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 7 %
California state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
Colorado state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 4 %
Connecticut state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 6.99 %
Delaware state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
Florida state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
Georgia state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 5.75 %
Hawaii state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
Idaho state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 6.925 %
Illinois state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 4.95 %
Indiana state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 3.23 %
Iowa state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 5 %
Kansas state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 5 %
Kentucky state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 5 %
Louisiana state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 5 %
Maine state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 5 %
Maryland state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 8.75 %
Massachusetts state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 5 %
Michigan state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 4.25 %
Minnesota state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 7.25 %
Mississippi state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
Missouri state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 4 %
Montana state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 6.9 %
Nebraska state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 5 %
Nevada state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
New Hampshire state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
New Jersey state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 8 %
New Maxico state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 6 %
New York state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 8.82 %
North Carilona state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 5.499 %
North Dakota state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 2.9 %
Ohio state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 4 %
Oklahoma state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 4 %
Oregon state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 8 %
Pennsylvania state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 3.07 %
Rhode Island state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 5.99 %
South Carolina state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 7 %
South Dakota state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
Tennessee state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
Taxes state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
Utah state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
Vermont state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 6 %
Virginia state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 4 %
Washington state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
West Virginia state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 6.5 %
Wisconsin state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 7.65 %
Wyoming state tax on lottery winnings in the USA
Federal Tax: 25 %
State Tax: 0 %
References :
- https://worldpopulationreview.com/state-rankings/taxes-on-lottery-winnings-by-state
- https://smartasset.com/taxes/how-taxes-on-lottery-winnings-work
- https://taxfoundation.org/lottery-tax-withholding-2019/
- https://www.cnbc.com/2019/09/20/what-you-pay-in-taxes-if-you-hit-211-million-mega-millions-jackpot.html
- https://www.investopedia.com/managing-wealth/winning-jackpot-dream-nightmare/