Lottery Winnings

What's the Tax on Lottery Winnings? federal lottery tax rate If you win more than $5,000, you have to pay a 24 percent federal withholding tax However, depending on your annual earnings and tax deductions, you may get federal tax lottery winnings The top tax rate for individuals is 37 percent for taxable income above $523,600 for tax year 2021 Most of a lottery jackpot winner's income

federal tax for lottery winnings The top federal tax rate is 37% for income over $500,000 When it comes to lottery prizes, the first thing that happens after you turn in