Lottery Tax Rates Vary Greatly By State

Lottery Tax Rates Vary Greatly By State federal lottery tax rate The lump sum prize works out to about $570 million, but 24% is automatically withheld for federal taxes The winner would also be subject to federal tax rate for lottery winnings The withholding rate for federal income tax is based, in part, on a claimant's resident status The Lottery is required to withhold federal taxes of 24% for

federal tax rate for lottery winnings All winnings over $5,000 are subject to tax withholding by lottery agencies at the rate of 24% This potentially leaves a gap between the

federal income tax on lottery winnings Of states that do withhold tax winnings, North Dakota is the lowest at % Pennsylvania , Indiana , and Ohio also have low rates of The IRS automatically withholds 30% of net lottery winnings in the US The rate at which the net winnings are ultimately taxed though depends on