MICHIGAN LOTTERY TAX · TAX YEAR 2026
Michigan lottery tax calculator
Michigan taxes lottery winnings as income, at its flat 4.25% rate. On a $1,000,000 prize with $75,000 of wages, a single filer owes $42,500 of Michigan tax and $340,080 of federal income tax, $382,580 in all, and keeps $617,420.
Tax on your prize
- Total tax on the prize
- $382,580.25
- Federal income tax
- $340,080.25
- Michigan tax
- $42,500.00
- After-tax prize
- $617,419.75
- Effective rate
- 38.26%
- Federal withholding at 24%
- $240,000.00
- Federal tax still owed
- $100,080.25
Michigan's lottery withholds state tax at its published rate.
Michigan tax by size of prize
What a single filer with $75,000 of wages owes on a prize.
| Prize | Federal tax | State tax |
|---|---|---|
| $10,000 | $2,200 | $425 |
| $100,000 | $23,064 | $4,250 |
| $1 million | $340,080 | $42,500 |
| $10 million | $3,670,080 | $425,000 |
Michigan lottery tax questions
Does Michigan tax lottery winnings?
Yes. Michigan taxes lottery winnings as income, at its flat 4.25% rate.
How much tax is due on a $1,000,000 lottery prize in Michigan?
A single filer with $75,000 of wages owes $340,080 of federal income tax and $42,500 of Michigan tax on a $1,000,000 prize, $382,580 in all, and keeps $617,420. On a $100,000 prize, Michigan tax is $4,250 and federal tax $23,064.
How much is withheld from a Michigan lottery prize?
Michigan's lottery withholds state tax at its published rate, and federal withholding is 24% of a prize over $5,000. On a $1,000,000 prize, federal withholding of $240,000 against $340,080 of federal tax leaves $100,080 of federal tax to pay at tax time.
What the calculator leaves out
- Michigan city income taxes are left 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.