ILLINOIS LOTTERY TAX · TAX YEAR 2026
Illinois lottery tax calculator
Illinois taxes lottery winnings as income, at its flat 4.95% rate. On a $1,000,000 prize with $75,000 of wages, a single filer owes $49,645 of Illinois tax and $340,080 of federal income tax, $389,725 in all, and keeps $610,275.
Tax on your prize
- Total tax on the prize
- $389,725.04
- Federal income tax
- $340,080.25
- Illinois tax
- $49,644.79
- After-tax prize
- $610,274.96
- Effective rate
- 38.97%
- Federal withholding at 24%
- $240,000.00
- Illinois withholding at 4.95% (2026)
- $49,500.00
- Still owed at tax time
- $100,225.04
Illinois tax by size of prize
What a single filer with $75,000 of wages owes on a prize, and what Illinois withholds from it.
| Prize | Federal tax | State tax | State withholding |
|---|---|---|---|
| $10,000 | $2,200 | $495 | $495 |
| $100,000 | $23,064 | $4,950 | $4,950 |
| $1 million | $340,080 | $49,645 | $49,500 |
| $10 million | $3,670,080 | $495,145 | $495,000 |
Illinois lottery tax questions
Does Illinois tax lottery winnings?
Yes. Illinois taxes lottery winnings as income, at its flat 4.95% rate.
How much tax is due on a $1,000,000 lottery prize in Illinois?
A single filer with $75,000 of wages owes $340,080 of federal income tax and $49,645 of Illinois tax on a $1,000,000 prize, $389,725 in all, and keeps $610,275. On a $100,000 prize, Illinois tax is $4,950 and federal tax $23,064.
How much is withheld from a Illinois lottery prize?
Illinois withholds 4.95% of a prize of $1,000 or more for state tax, and federal withholding is 24% of a prize over $5,000. On a $1,000,000 prize, $289,500 is withheld against $389,725 of tax, leaving $100,225 to pay at tax time.
What the calculator leaves out
- Illinois tests the $1,000 withholding threshold on each payment, even when a shared ticket splits into shares under $1,000.
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
- Illinois Department of Revenue: withholding on lottery and gambling winnings
- Illinois Department of Revenue: income tax rates
- Booklet IL-700-T (2026): rate and exemption allowance