Michigan lottery tax calculator
Federal tax at your 2026 bracket (up to 37%) plus a flat 4.25%. A single filer with no other income keeps $637,499.75 of a $1,000,000 prize: $320,000.25 federal and $42,500.00 Michigan tax.
Checked 2026-11-06. Sources: Michigan Treasury: 4.25% income tax rate for the 2026 tax year; Michigan Treasury: Are gambling/lottery winnings subject to Michigan income tax?.
Federal tax at 2026 rates plus Michigan'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 Michigan taxes lottery prizes
- Michigan's income tax rate for 2026 is 4.25%.
- Gambling and lottery winnings are taxed to the extent they are in your federal adjusted gross income. Michigan has no subtraction for gambling losses.
Michigan payers withhold 4.25% on winnings they must report to the IRS on Form W-2G ($2,000 or more in 2026).
Take-home by prize size in Michigan
| Prize | Federal tax | MI tax | Withheld at claim | Take-home |
|---|---|---|---|---|
| $10,000.00 | $0.00 | $425.00 | $2,825.00 | $9,575.00 |
| $100,000.00 | $13,170.00 | $4,250.00 | $28,250.00 | $82,580.00 |
| $1,000,000.00 | $320,000.25 | $42,500.00 | $282,500.00 | $637,499.75 |
| $10,000,000.00 | $3,650,000.25 | $425,000.00 | $2,825,000.00 | $5,924,999.75 |
| $100,000,000.00 | $36,950,000.25 | $4,250,000.00 | $28,250,000.00 | $58,799,999.75 |
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 Michigan?
Federal tax at your 2026 bracket (up to 37%) plus a flat 4.25%. A single filer with no other income keeps $637,499.75 of a $1,000,000 prize: $320,000.25 federal and $42,500.00 Michigan tax.
Does Michigan withhold state tax from lottery prizes?
Michigan payers withhold 4.25% on winnings they must report to the IRS on Form W-2G ($2,000 or more in 2026).
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.
Michigan sources
- Michigan Treasury: 4.25% income tax rate for the 2026 tax year
- Michigan Treasury: Are gambling/lottery winnings subject to Michigan income tax?
- 2026 Michigan Income Tax Withholding Guide (Form 446)
Checked 2026-11-06. Other states: Pennsylvania, California, Illinois, Texas, Arizona, Virginia, Oregon, Florida, Georgia, Wisconsin, Massachusetts, Colorado.
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.