One thought on “What is the tax rate for lottery winnings?

  1. Arti says:

    You could also use it to buy or expand a business. You can choose to invest it into a retirement account or other stock option to generate a return. Therefore, you won’t pay the same tax rate on the entire amount. The tax brackets are progressive, which means portions of your winnings are taxed at alternative rates. When it comes to federal taxes, lottery winnings are taxed according to the federal tax brackets. When it If you take a lump sum, you have more control over your money right now. Depending on the number of your winnings, your federal tax rate could be as high as 37 percent as per the lottery tax calculation.

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