Lottery Payout Options: Annuity vs Lump Sum

Under Act 84 of 2016, the Pennsylvania personal income tax of percent now applies to Pennsylvania Lottery cash prizes paid after January 1, 2016

The federal government withholds 24% of your winnings immediately You may owe additional federal taxes depending on your overall tax bracket Each state also

tax percentage on lottery winnings The IRS charges a flat rate of 24% on all lottery winnings over $5,000 For example, if you won $1 million, you would pay around $240,000 in

taxes lottery Lottery winnings aren't income tax-free The IRS and some states will take a share of your windfall, but some states don't tax lottery