How Taxes on Lottery Winnings Work

A mandatory 24% federal tax withholding would reduce the lump sum to $218 million, and a federal marginal rate as high as 37%—depending on the

Most states charge a tax on lottery winnings The amount initially withheld and how the winnings get taxed depends on your state's tax rate

lottery sambad 01_01_2024 Say you win a $10 million prize If you take the lump sum option, the entire sum is subject to income tax that year However, if you choose the annuity option,

lottery sambad common number A 2018 USA TODAY analysis recommended taking the lump sum If a winner joins the ranks of the luckiest people alive, like the New Jersey person