MINNESOTA LOTTERY TAX · TAX YEAR 2026
Minnesota lottery tax calculator
Minnesota taxes lottery winnings as income, at rates from 5.35% to 9.85%. On a $1,000,000 prize with $75,000 of wages, a single filer owes $96,314 of Minnesota tax and $340,080 of federal income tax, $436,395 in all, and keeps $563,605.
Tax on your prize
- Total tax on the prize
- $436,394.72
- Federal income tax
- $340,080.25
- Minnesota tax
- $96,314.47
- After-tax prize
- $563,605.28
- Effective rate
- 43.64%
- Federal withholding at 24%
- $240,000.00
- Minnesota withholding at 7.25% (2026)
- $72,500.00
- Still owed at tax time
- $123,894.72
Minnesota tax by size of prize
What a single filer with $75,000 of wages owes on a prize, and what Minnesota withholds from it.
| Prize | Federal tax | State tax | State withholding |
|---|---|---|---|
| $10,000 | $2,200 | $680 | $725 |
| $100,000 | $23,064 | $7,328 | $7,250 |
| $1 million | $340,080 | $96,314 | $72,500 |
| $10 million | $3,670,080 | $982,814 | $725,000 |
Minnesota lottery tax questions
Does Minnesota tax lottery winnings?
Yes. Minnesota taxes lottery winnings as income, at rates from 5.35% to 9.85%.
How much tax is due on a $1,000,000 lottery prize in Minnesota?
A single filer with $75,000 of wages owes $340,080 of federal income tax and $96,314 of Minnesota tax on a $1,000,000 prize, $436,395 in all, and keeps $563,605. On a $100,000 prize, Minnesota tax is $7,328 and federal tax $23,064.
How much is withheld from a Minnesota lottery prize?
Minnesota withholds 7.25% for state tax and 24% for federal tax from a prize over $5,000. On a $1,000,000 prize, $312,500 is withheld against $436,395 of tax, leaving $123,895 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.