Lottery winnings · Illinois
Illinois lottery tax calculator
Illinois taxes lottery winnings as ordinary income at its flat 4.95%, after the same allowance or deduction that applies to wages.
Lump sum: enter the cash option, not the advertised jackpot. Annuity: enter one year's payment.
The prize is stacked on top of this. It decides which bracket the winnings land in — and whether the 24% withheld was too much or too little.
What you keep after taxes
25.7% of the prize goes in tax · top federal rate 22.0%
- Prize
- $50,000
- Federal income tax on it
- −$10,350
- Illinois income tax on it
- −$2,475
- You keep
- $37,175
The cheque at claim
- Federal withheld (24.0% — proceeds over $5,000)
- −$12,000
- Illinois withheld (5.0%)
- −$2,475
- Cheque
- $35,525
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At the counter
What is withheld in Illinois
Federal first, everywhere: on proceeds over $5,000 the payer withholds 24% of the whole amount — not the part over the line — and reports it on Form W-2G. That is a prepayment. The tax is settled on your return.
At claim, 4.95% is withheld for Illinois on prizes of $1,000 or more — the state's own words: "You must withhold Illinois Income Tax each time you make a single payment of Illinois lottery winnings of $1,000 or more."
Worked amounts
Three prizes, cheque and bill
| Prize | Cheque at claim | Federal tax | Illinois tax | You keep |
|---|---|---|---|---|
| $10,000 | $7,105 | −$1,550 | −$495 | $7,955 |
| $100,000 | $71,050 | −$22,114 | −$4,950 | $72,936 |
| $1,000,000 | $710,500 | −$337,180 | −$49,500 | $613,320 |
Single filer with $60,000 of other income for the year.
Questions
How much tax is taken from lottery winnings in Illinois?
Two layers. Federal: the payer withholds 24% on proceeds over $5,000, and the prize is then taxed on your return as ordinary income at the 2026 rates — up to 37%. State: Illinois taxes lottery winnings as ordinary income at its flat 4.95%, after the same allowance or deduction that applies to wages. At claim, 4.95% is withheld for Illinois on prizes of $1,000 or more — the state's own words: "You must withhold Illinois Income Tax each time you make a single payment of Illinois lottery winnings of $1,000 or more."
Does Illinois tax lottery winnings?
Illinois taxes lottery winnings as ordinary income at its flat 4.95%, after the same allowance or deduction that applies to wages.
What will the cheque be on a $100,000 prize in Illinois?
About $71,050 — the prize less $24,000 federal withholding and $4,950 Illinois withholding. The tax actually owed for a single filer earning $60,000 elsewhere is about $27,064, so what you keep is $72,936. Your own figure depends on your other income and filing status.
Is the withholding the same as the tax?
No. Withholding is a prepayment at a flat rate the IRS sets for everyone. The tax is worked out on your return from your total income. If your bracket is above 24% you owe the difference in April; if it is below, the excess comes back as a refund. On a jackpot the gap is large — roughly a third of the federal tax is still owed after the 24% is taken.
Where these figures come from
- IRS Instructions for Forms W-2G and 5754 (Rev. January 2026) — regular gambling withholding, lotteries — read 2026-08-26
- Illinois Department of Revenue — Pub-130, Withholding Illinois Income Tax for Lottery or Gambling Winnings — read 2026-08-26
- Illinois Booklet IL-700-T (2026) — read 2026-08-20
Federal tax owed uses the 2026 rate schedules and standard deduction from Form 1040-ES. Illinois tax uses the same rules as our Illinois paycheck calculator. Not modelled: annuity maths, itemised deductions, local income taxes, non-resident rules. Estimates only — not tax advice.
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