Lottery winnings · Wisconsin
Wisconsin lottery tax calculator
Wisconsin taxes lottery winnings as ordinary income under its graduated schedule — the prize is stacked on your other income, so the rate depends on the total.
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
26.2% of the prize goes in tax · top federal rate 22.0%
- Prize
- $50,000
- Federal income tax on it
- −$10,350
- Wisconsin income tax on it
- −$2,737
- You keep
- $36,913
The cheque at claim
- Federal withheld (24.0% — proceeds over $5,000)
- −$12,000
- Wisconsin withheld (rule not transcribed yet)
- —
- Cheque
- $38,000
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At the counter
What is withheld in Wisconsin
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.
Wisconsin may also withhold state tax at the counter on larger prizes. That figure is not on this page yet, so the at-claim line is blank — what you see is the Wisconsin tax you will owe on the prize, not what is taken at the window.
Worked amounts
Three prizes, cheque and bill
| Prize | Cheque at claim | Federal tax | Wisconsin tax | You keep |
|---|---|---|---|---|
| $10,000 | $7,600* | −$1,550 | −$594 | $7,856 |
| $100,000 | $76,000* | −$22,114 | −$5,387 | $72,499 |
| $1,000,000 | $760,000* | −$337,180 | −$71,385 | $591,435 |
Single filer with $60,000 of other income for the year. * Federal withholding only — the Wisconsin at-claim figure is not on this page yet, so the real cheque may be smaller.
Questions
How much tax is taken from lottery winnings in Wisconsin?
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: Wisconsin taxes lottery winnings as ordinary income under its graduated schedule — the prize is stacked on your other income, so the rate depends on the total. Wisconsin may also withhold state tax at the counter on larger prizes. That figure is not on this page yet, so the at-claim line is blank — what you see is the Wisconsin tax you will owe on the prize, not what is taken at the window.
Does Wisconsin tax lottery winnings?
Wisconsin taxes lottery winnings as ordinary income under its graduated schedule — the prize is stacked on your other income, so the rate depends on the total.
What will the cheque be on a $100,000 prize in Wisconsin?
About $76,000 — the prize less $24,000 federal withholding. The tax actually owed for a single filer earning $60,000 elsewhere is about $27,501, so what you keep is $72,499. 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
- Wisconsin Publication W-166, Withholding Tax Guide (rev. 1/26) — Alternate Method of Withholding, pages 25-26 — read 2026-08-28
Federal tax owed uses the 2026 rate schedules and standard deduction from Form 1040-ES. Wisconsin tax uses the same rules as our Wisconsin paycheck calculator. Not modelled: annuity maths, itemised deductions, local income taxes, non-resident rules. Estimates only — not tax advice.
Other states
Or start with the lottery tax calculator to compare the federal cheque, final tax bill and every state from one place.