These Eight States Won't Tax Your Mega Millions Jackpot Winnings

tax on lottery winnings usa
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The Internal Revenue Service imposes a federal tax rate of 24%, and California's state income tax, with rates ranging from 1% to %,

Lottery winnings are considered taxable income Besides the upfront withholding, your total federal tax rate could be higher—up to 37% If you So when the winner next files their taxes, they'll likely have to give the IRS another 13% of that prize In most states, the tax is taken

north carolina lottery pick 5 Federal lottery taxes Winning the lottery could push you into a higher tax bracket, and the highest bracket is 37% if you make over $518,400 in Gambling winnings are fully taxable and you must report the income on your tax return Gambling income includes but isn't limited to winnings from lotteries,