ARKANSAS LOTTERY TAX · TAX YEAR 2026
Arkansas lottery tax calculator
Arkansas taxes lottery winnings as income, at rates from 2% to 3.7%. On a $1,000,000 prize with $75,000 of wages, a single filer owes $37,287 of Arkansas tax and $340,080 of federal income tax, $377,368 in all, and keeps $622,632.
Tax on your prize
- Total tax on the prize
- $377,367.51
- Federal income tax
- $340,080.25
- Arkansas tax
- $37,287.26
- After-tax prize
- $622,632.49
- Effective rate
- 37.74%
- Federal withholding at 24%
- $240,000.00
- Arkansas withholding at 3.7% (2026)
- $37,000.00
- Still owed at tax time
- $100,367.51
Arkansas tax by size of prize
What a single filer with $75,000 of wages owes on a prize, and what Arkansas withholds from it.
| Prize | Federal tax | State tax | State withholding |
|---|---|---|---|
| $10,000 | $2,200 | $370 | $370 |
| $100,000 | $23,064 | $3,987 | $3,700 |
| $1 million | $340,080 | $37,287 | $37,000 |
| $10 million | $3,670,080 | $370,287 | $370,000 |
Arkansas lottery tax questions
Does Arkansas tax lottery winnings?
Yes. Arkansas taxes lottery winnings as income, at rates from 2% to 3.7%.
How much tax is due on a $1,000,000 lottery prize in Arkansas?
A single filer with $75,000 of wages owes $340,080 of federal income tax and $37,287 of Arkansas tax on a $1,000,000 prize, $377,368 in all, and keeps $622,632. On a $100,000 prize, Arkansas tax is $3,987 and federal tax $23,064.
How much is withheld from a Arkansas lottery prize?
Arkansas withholds 3.7% for state tax and 24% for federal tax from a prize over $5,000. On a $1,000,000 prize, $277,000 is withheld against $377,368 of tax, leaving $100,368 to pay at tax time.
What the calculator leaves out
Federal tax stacks the prize on wages after the 2026 standard deduction and taxes it at the ordinary brackets. Withholding treats the whole prize as winnings, though the IRS tests winnings minus the wager. The calculator takes the cash received this year: a lump sum is taxed in full the year it is paid, and annuity payments are taxed each year as they are received. Gambling losses are left out; only filers who itemize can deduct them, and from 2026 only up to 90% of losses. Tax another state may charge on a ticket bought there is left out.
Sources
- IRS Topic 419, Gambling income and losses
- IRS Instructions for Forms W-2G and 5754
- IRS Publication 505 (2026), Tax Withholding and Estimated Tax
- IRS Revenue Procedure 2025-32: 2026 tax brackets
- Arkansas Scholarship Lottery: claim your prize
- Act 1 of the 2026 First Extraordinary Session: 3.7% top rate and 2026 tables