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Here I heard it's 45% for lump sum plus 18% for state and city taxes....around 63% GIVE OR TAKE Every time this Q comes up it seems people want to make it much more difficult than it is. Lottery winnings are treated like any other ordinary income. It is taxed when received. If you take a lump sum payout, you would need to declare that as income on your next return, (making estimated payments as needed). The actual amount you will pay is dependent on other factors that determine your taxable income for the tax brackets. So, if you had large losses, medical or business expenses that year, you would pay a different amount. However, presuming those don't really change a large payout like you mentioned by much, you would pay the Federal and State?local income tax rates for where it was won. Presumably 32% for Federal....and whatever state/local amounts...rememebering that what you pay on the S/L is deductible from the Federal income and makes the effective State rate much less.

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18y ago

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