How much do Ohio lottery winners really get after taxes?

(WJW) — Have you ever dreamed about winning the lottery? Maybe you would spend the winnings on a brand new house or an extravagant trip overseas.

However, the massive jackpot prizes are not as large as they seem. Winners still have to account for mandatory taxes withheld at both the state and federal levels.

Right off the bat, as FOX 8 News previously reported , federal regulators will withhold 24% in taxes for lottery prizes of $5,000 or more. Those taxes will go to the IRS.

Additionally, according to Ohio Lottery, the state of Ohio will withhold 4% in taxes for lottery prizes of $600 or more.

Ohio Lottery offers a calculator on its website so lottery players can determine estimated annuity and cash option prize amounts.

For example, if someone won $1 million, they would have the option of the full annuitized prize or a $500,000 lump sum, before taxes.

The estimated annuity payment for the first year would be $43,000 and $33,000 for years 2 to 30. After state and federal taxes, the first-year payment would be roughly $30,530 and following years would be roughly $23,430 annually.

The one-time cash option after taxes would be an estimated $360,000.

The Mega Millions jackpot sits at $800 million ahead of Tuesday night’s drawing. Based on Ohio Lottery’s calculations, an Ohio winner would receive about $18.9 million annually after taxes. The lump sum option of about $400 million would be roughly $288 million after taxes.

After all that, even more taxes could apply to a major lottery prize. As FOX 8 News previously reported , winning millions of dollars will send you into the highest federal income tax bracket, meaning you will owe more when taxes are due.

According to the IRS , the top tax rate in 2024 was 37% “for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly).”

Learn more about Ohio Lottery prizes up for grabs here.

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