Colorado lottery tax calculator
Federal tax at your 2026 bracket (up to 37%) plus a flat 4.4%. A single filer with no other income keeps $635,999.75 of a $1,000,000 prize: $320,000.25 federal and $44,000.00 Colorado tax.
Checked 2026-11-06. Sources: Colorado DOR: 2026 estimated tax worksheet (DR 0104EP); Colorado DOR: Withholding tax topics, gambling winnings.
Federal tax at 2026 rates plus Colorado's state tax and withholding. Enter the amount you receive this year: the cash option, or one annuity payment.
21+ in most states. If gambling stops being fun, free confidential help is available 24/7: call or text 1-800-GAMBLER (National Council on Problem Gambling).
How Colorado taxes lottery prizes
- Colorado taxes income at a flat rate; the Department of Revenue's 2026 estimated tax worksheet uses 4.4%.
- The 4% withheld on prizes over $5,000 is a prepayment; the rest is due when you file.
Colorado withholds 4% state income tax from lottery prizes over $5,000 (with 24% federal).
Take-home by prize size in Colorado
| Prize | Federal tax | CO tax | Withheld at claim | Take-home |
|---|---|---|---|---|
| $10,000.00 | $0.00 | $440.00 | $2,800.00 | $9,560.00 |
| $100,000.00 | $13,170.00 | $4,400.00 | $28,000.00 | $82,430.00 |
| $1,000,000.00 | $320,000.25 | $44,000.00 | $280,000.00 | $635,999.75 |
| $10,000,000.00 | $3,650,000.25 | $440,000.00 | $2,800,000.00 | $5,909,999.75 |
| $100,000,000.00 | $36,950,000.25 | $4,400,000.00 | $28,000,000.00 | $58,649,999.75 |
Single filer, no other income, federal standard deduction and 2026 brackets. Local (city or county) taxes are not included.
Questions
How much tax do you pay on lottery winnings in Colorado?
Federal tax at your 2026 bracket (up to 37%) plus a flat 4.4%. A single filer with no other income keeps $635,999.75 of a $1,000,000 prize: $320,000.25 federal and $44,000.00 Colorado tax.
Does Colorado withhold state tax from lottery prizes?
Colorado withholds 4% state income tax from lottery prizes over $5,000 (with 24% federal).
Is the 24% federal withholding the whole federal tax?
No. It is a down payment. Large prizes fall mostly into the 37% bracket, so the rest is due when you file.
Colorado sources
- Colorado DOR: 2026 estimated tax worksheet (DR 0104EP)
- Colorado DOR: Withholding tax topics, gambling winnings
- Colorado Lottery: FAQs
Checked 2026-11-06. Other states: Pennsylvania, Michigan, California, Illinois, Texas, Arizona, Virginia, Oregon, Florida, Georgia, Wisconsin, Massachusetts.
Sources
- Rev. Proc. 2025-32, section 4.01 (2026 tax rate tables) and 4.14 (standard deduction)
- IRS proposed §1.165-10, Internal Revenue Bulletin 2026-19 (90% wagering loss limit, P.L. 119-21 §70114)
- Instructions for Forms W-2G and 5754 (Rev. January 2026)
- IRS Topic no. 419, Gambling income and losses
Checked 2026-11-06. The 90% rule is law (P.L. 119-21); the IRS regulation implementing it is still proposed. Bills to restore the 100% deduction have been introduced in Congress but not passed. This is an estimate for planning, not tax advice; a tax professional can check your full return.