How much tax is deducted from lottery jackpots?

Question

If I were to win, let's say 75 million dollars, how much would I really get to keep after ALL mandatory taxes, charities, etc... are deducted? (Just wondering...)

Answer 1

The mandatory taxes are federal income tax and state income tax (depending upon your state).
The maximum federal tax rate is 35%. So your federal tax will be very slightly less than 35%.
Now state income tax, it should be 10% (unless you are lucky).

Charities are not mandatory. When you give to charities you must know that the amount of your deduction is limited to 50% of your adjusted gross income and may be limited to 30% or 20% of your adjusted gross income, depending on the type of organization you give it to.
IRS Publication 526 Charitable Contributions.

Answer 2

You'd lose a little under 35% to the feds. Most states don't tax their own state lotteries, but if it's some other lottery or if you are in a state that does tax their own lotteries, there could be additional tax due to the state.

So basically, you'd get to keep almost 2/3 after taxes.

Charities? That would be up to you. You could give all of it, none of it, or anywhere in between.

Answer 3

Lottery winnings are taxed at your regular income tax rate, and the top rate for federal is 35% (it is unlikely you will have enough deductions to move down a tax bracket). Then you may or may not be obligated for state tax, and local (if applicable).

Answer 4

Depends on the tax bracket you are in, but assume you will lose 1/4 to 1/3.

Answer 5

they may withhold 20%, but guarantee you will owe more than that, so make sure you make estimated payments that equal 35% minus whatever % is withheld -might owe state income tax also

Answer 6

I think it's something like 50%