Minnesota Lottery Tax Calculator

Calculate your take-home winnings after 9.85% Minnesota state tax and federal taxes.

State Tax Rate

9.85%

Minnesota Income Tax

Federal Tax Rate

24–37%

24% withheld upfront

Max Combined Rate

46.85%

Federal + state

Minnesota withholds 9.85% state income tax on lottery prizes above the threshold, in addition to 24% federal withholding. Your maximum combined rate could reach 46.85%.

Enter Your Winnings

$

Lump sum is approximately 55% of the advertised jackpot

Your estimated take-home winnings

$333,778

After 39.31% effective tax rate

Tax Breakdown

Advertised Jackpot
$1,000,000
Lump Sum (55%)

Cash value before taxes

$550,000
Federal Tax (29.46% effective)
-$162,047
Minnesota Income Tax (9.85%)
-$54,175
Total Tax
-$216,222
Net Winnings
$333,778

Winnings Distribution

Take Home
Federal
State

Frequently Asked Questions — Minnesota Lottery Taxes

How much tax do I pay on a $1 million lottery win in Minnesota?

On a $1 million lottery win in Minnesota, the lump sum cash value is approximately $550,000. Federal withholding is 24% ($132,000) and Minnesota state tax is 9.85% ($54,175). Your estimated take-home lump sum is approximately $363,825 — though your final federal tax bill may be higher depending on your total income for the year.

Does Minnesota tax lottery winnings?

Yes. Minnesota taxes lottery winnings at a 9.85% state income tax rate. This is in addition to federal taxes of 24-37%. The Minnesota lottery withholds state taxes automatically on prizes above the threshold.

What is the lottery tax rate in Minnesota?

In Minnesota, the lottery tax rate is 9.85% at the state level, plus federal taxes of 24-37%. The federal government withholds 24% upfront on prizes over $5,000. Combined, lottery winners in Minnesota may pay up to 46.85% in total taxes.

Lottery Tax in Minnesota

Minnesota imposes a 9.85% state income tax on lottery winnings (Minnesota Income Tax). This is in addition to federal taxes of up to 37%. Combined, lottery winners in Minnesota may pay up to 46.85% in total taxes.

The Minnesota lottery withholds state taxes automatically on prizes over a certain threshold. If you are a non-resident winner, different withholding rates may apply.

Tax Sources & References

Federal withholding rates are based on IRS Topic No. 419 — Gambling Income and Losses. State tax rates are sourced from each state's department of revenue. Official Minnesota lottery rules and prize information are published on the Minnesota Lottery official website.

Disclaimer

This calculator provides estimates only and does not constitute tax advice. Actual tax amounts may vary based on your individual circumstances, deductions, and other income. Please consult a qualified tax professional for advice specific to your situation.