How much would you keep?
Estimate your lottery prize after federal and state taxes.
State Tax Guide
Minnesota taxes lottery winnings through a progressive state income-tax structure. Use this calculator to compare withholding versus final liability and estimate what you actually keep after tax.
Last reviewed · Tax year
Estimate your lottery prize after federal and state taxes.
These examples show estimated take-home amounts for common prize sizes and current Powerball and Mega Millions cash values. They use the calculator's default settings for federal tax, Minnesota state tax, payout choice, and filing status.
| Gross prize | Estimated federal tax | Estimated Minnesota state tax | Estimated take-home | Effective tax rate |
|---|---|---|---|---|
| $100,000 | $13,170 | $6,327 | $80,503 | 19.5% |
| $500,000 | $138,134 | $43,674 | $318,192 | 36.36% |
| $1,000,000 | $320,000 | $92,924 | $587,076 | 41.29% |
| $10,000,000 | $3,650,000 | $979,424 | $5,370,576 | 46.29% |
With the default settings, a $1 million Minnesota Lottery prize comes out to about $587,076 in estimated take-home pay. The estimate includes federal tax and $92,924 in estimated Minnesota state tax.
| Gross prize | $1,000,000 |
|---|---|
| Estimated federal tax | $320,000 |
| Estimated Minnesota state tax | $92,924 |
| Estimated total tax | $412,924 |
| Estimated take-home | $587,076 |
| Effective tax rate | 41.29% |
This is an estimate based on the settings shown here. Your actual result can change based on your federal return, income, deductions, residency, and other tax facts.
This estimate uses the current Powerball cash value, not the advertised annuity jackpot. It also includes estimated Minnesota state tax and federal tax based on the calculator settings above.
| Advertised jackpot | $232M |
|---|---|
| Cash value used for this estimate | $100M |
| Federal withholding | $24,000,000 |
| Estimated federal tax | $36,950,000 |
| Estimated Minnesota state tax | $9,844,424 |
| Estimated cash after tax | $53,205,576 |
This estimate is tied to the next Powerball drawing on Sunday, September 13, 2026. Jackpot values refresh with the page's hourly revalidation. Use the calculator controls for filing status, residency, annuity, and payout settings.
This estimate uses the current Mega Millions cash value, not the advertised annuity jackpot. It also includes estimated Minnesota state tax and federal tax based on the calculator settings above.
| Advertised jackpot | $209M |
|---|---|
| Cash value used for this estimate | $89.7M |
| Federal withholding | $21,528,000 |
| Estimated federal tax | $33,139,000 |
| Estimated Minnesota state tax | $8,829,874 |
| Estimated cash after tax | $47,731,126 |
This estimate is tied to the next Mega Millions drawing on Saturday, September 12, 2026. Jackpot values refresh with the page's hourly revalidation. Use the calculator controls for filing status, residency, annuity, and payout settings.
Minnesota taxes lottery winnings at a progressive state income tax rate, not a flat rate. For 2026, the published bracket range for taxable income is 5.35% to 9.85%, so the amount a winner ultimately pays can depend on filing facts and total income, not just the prize size. A broad one-rate table misses that Minnesota uses brackets and a filing-time calculation.
Swipe sideways to compare all columns.
Usually applies above $5,000.
State tax used in the estimate.
Payout-time state withholding.
For Minnesota, the table separates state tax, state withholding, federal withholding, local tax where relevant, and claim timing so the payout amount is not confused with the return result.
Minnesota's 5.35%-9.85% state rate should not be read as the claim-check deduction; 7.25% withholding can apply above $5,000 and the return reconciles the rest.
Minnesota lottery winnings are part of the state income tax result, and the final amount due is not decided by a flat lottery rate. Because Minnesota uses progressive brackets, the tax estimate depends on taxable income and filing facts, especially for larger prizes.
Minnesota withholding is an upfront payment, not the final tax bill. The state withholds 7.25% on prizes over $5,000, but the final Minnesota tax liability is reconciled when the winner files a return. A prize below the withholding threshold may still create reporting and filing duties even if little or nothing is withheld at payout.
Swipe sideways to compare all columns.
Use this table to separate the amount withheld when the prize is paid from the amount that may still be reconciled when the return is filed.
The amount withheld when a prize is claimed is only an estimate paid in advance. Minnesota later compares that amount with the tax shown on the filed return, so a winner can still owe more or receive a different final result after filing.
Prize size changes how likely withholding, reporting, and filing become, but it does not by itself set the final Minnesota tax. Smaller prizes may not have much withheld at payout, while larger prizes are more likely to trigger reporting and meaningful withholding. The final result still depends on taxable income, federal tax, and Minnesota’s progressive brackets.
Swipe sideways to compare all columns.
The prize-size table shows why a small reporting question, a federal withholding threshold, and a large-jackpot filing estimate should not be treated as the same tax problem.
Use the actual cash prize amount for Minnesota, not only the advertised jackpot, because $600 reporting and $5,000 federal withholding answer different questions.
A $600 win can still matter at tax time even if the payout feels small. Federal reporting can apply, and the prize may still need to be included when the winner files income tax returns.
$5,000 is the important Minnesota cutoff because state withholding applies above that level. Once a prize clears that threshold, the amount paid out may already be reduced by Minnesota withholding before the return is filed.
At $50,000, the difference between payout withholding and final liability becomes easier to see. The prize is large enough that the return, not just the claim slip, determines the full Minnesota tax outcome.
A $1 million prize is the kind of win where Minnesota’s progressive brackets matter most. Large winnings can push a taxpayer into higher state brackets, so take-home after tax is shaped by filing facts, not a single published rate.
Minnesota does not use a different state lottery tax rate for nonresidents, but nonresidents who win in Minnesota must still file a Minnesota non-resident return to report the winnings. Residency can therefore change the filing step even when the underlying state rate does not change. Winners who live in another state should also think about multi-state tax effects.
Swipe sideways to compare all columns.
Residency still matters because the prize state, home state, and federal return can each create a different filing question.
Minnesota residency still matters because the prize state and the winner's home state can each affect reporting, credits, and the final amount kept.
For Minnesota, residency mainly changes the filing obligation rather than the published rate. A Minnesota resident reports the winnings on the state return, while a nonresident who won in Minnesota must file a Minnesota non-resident return to report that income.
The payout choice changes when the tax is recognized, which can change the estimate even if the prize total is the same. A lump sum concentrates the income sooner, while annuity payments spread it over time. Minnesota’s progressive brackets make that timing relevant because different years can produce different filing results.
Swipe sideways to compare all columns.
The payout table is about timing: the same advertised prize can create different tax-year results depending on whether money is received at once or over time.
A lump sum brings the income into one tax year, so the return result can reflect a larger one-year total. That can matter in Minnesota because bracket placement is based on taxable income for the year.
An annuity spreads the prize over time, so the tax result is built year by year rather than all at once. For a progressive-tax state like Minnesota, that means the timing of each payment can affect the bracket level in the year it is received.
Lottery winners should keep claim records and tax forms because Minnesota reporting can involve both federal and state returns. Form W-2G may apply to gambling winnings over $600, Form 1040 is where lottery income is reported federally, and Minnesota has its own state return for reporting the winnings. Minnesota’s claim deadline is 180 days.
Minnesota claim records, Form W-2G, and the state return should be kept together; the 180-day claim window is separate from tax filing.
Lottery winnings can show up on both federal and state tax filings. For federal reporting, Form W-2G may apply to gambling winnings over $600, and Form 1040 is where the income is ultimately reported. Minnesota also uses its own state return for the same prize income.
Keep the claim paperwork, tax forms, and any payout details tied to the prize. Those records help match what was withheld at payout with what is reported later on the federal and Minnesota returns.
Minnesota’s claim deadline is 180 days. That deadline matters for prize claims, but it does not replace the need to keep tax records or file the proper returns if the win is taxable.
A top-rate table alone does not give a full Minnesota lottery tax estimate because Minnesota is progressive and the final liability depends on taxable income, filing status, withholding, and whether the winner is a resident or nonresident. The published rate range does not tell you where the prize lands in the brackets or how much tax was already withheld.
Minnesota estimates should use the bracket table, not only the top rate, because a one-rate list misses how taxable income is applied.
Using only the highest Minnesota rate can make a take-home estimate look smaller than it really is, while using only a low rate can make it look too generous. The better estimate has to account for where the prize fits in the brackets and what the return shows after withholding is credited.
Minnesota’s 2026 income tax brackets for taxable income are 5.35% from $0 to $32,612, 6.80% from $32,613 to $107,002, 7.85% from $107,003 to $198,982, and 9.85% from $198,983 to $999,999,999. That progressive structure is the key reason a flat lottery tax table is incomplete for Minnesota.
Swipe sideways to compare all columns.
Minnesota progressive rates require a bracket check, so the table keeps the exact rate bands separate from the plain-language estimate.
Minnesota progressive treatment means the final estimate depends on filing facts, not only the gross prize amount.
Minnesota's progressive bracket table is more useful than a single top-rate shortcut because taxable income determines which rates apply.
Minnesota’s tax estimate depends on where taxable income lands inside the bracket structure. For lottery winners, that means the same prize can produce different results depending on the rest of the return and whether the income pushes the taxpayer into a higher bracket.
Lottery Valley’s estimate combines the published Minnesota state rate treatment, the 7.25% withholding rule above $5,000, and federal reporting context so the payout estimate reflects both withholding and final filing-time liability. It uses the prize amount, residency treatment, and payout choice to show a practical take-home estimate rather than a single tax number.
The estimate includes Minnesota’s progressive state tax treatment, Minnesota withholding above $5,000, and the federal reporting context that affects what a winner may actually keep. It is meant to show the take-home picture, not just the headline tax rate.
The estimate does not replace the final return, and it does not decide the winner’s full tax outcome for every filing situation. Residency, other income, and the completed return can still change the final amount due or the amount credited from withholding.
More Lottery Links
Move from Minnesota tax estimates into state lottery guides, game pages, and related resources.
Tax calculator
Compare all state lottery tax estimates from the main calculator.
State lottery
Go back to Minnesota lottery results, featured games, and key state lottery information.
Games
See the main Minnesota games, results, and draw details.
Jackpots
See current prize amounts when the next step is jackpot context rather than tax estimates alone.
Lottery Tax Guides
These explainers cover the questions users usually ask after checking a Minnesota tax estimate, including withholding, payout choice, and state-vs-resident filing issues.
Federal Tax Mechanics
See when 24% federal tax is withheld from lottery winnings and why the final tax on a return can be higher or lower.
Payout Decisions
Compare how lump-sum and annuity lottery payouts change tax timing, federal brackets, and after-tax cash flow.
Get answers to common questions about Minnesota lottery taxes, including withholding, filing, payout options, and the after-tax amount you may actually keep.
Minnesota taxes lottery winnings at 5.35%-9.85% depending on taxable income and filing facts. The final amount can change based on filing status, taxable income, residency, and any local rules that apply.
Minnesota withholds 7.25% on prizes over $5,000. Withholding is an upfront payment, not the final tax calculation. Federal withholding is separate from state withholding, and both may differ from the final amount due on a tax return.
Yes. Lottery winnings are generally taxable income for federal purposes. Large prizes may have federal withholding at payout, and the final federal tax is reconciled when the winner files a return.
A prize in this range may create reporting requirements even when full withholding does not happen at payout. Keep the payout statement and use it when filing federal and Minnesota tax returns.
No. Withholding is an upfront payment taken from the prize. The final tax depends on the full tax return, including filing status, total income, deductions or credits, and any state or local rules that apply.
Nonresidents may have Minnesota filing obligations for prizes won in the state. They may also need to report the prize in their home state, depending on that state's rules.
The payment choice changes when income is received. A lump sum is taxed in the year it is paid, while annuity payments are generally taxed as each payment is received. Withholding and final liability can differ by year.
Keep the ticket or claim record, payout statement, Form W-2G if issued, withholding details, and any state lottery documents. These records help reconcile what was withheld with the final tax return.
The typical claim window shown for this page is 180 days from the drawing date. Confirm the exact deadline with the official lottery before waiting to claim.
We use official tax, lottery, and federal sources to keep the calculator assumptions clear. This page is an estimate for planning, not tax advice.
Update note: Refreshed 2026 state tax assumptions, payout comparisons, and official source links for Minnesota.
| Source | Category | What it supports | Verified |
|---|---|---|---|
| IRS Instructions for Forms W-2G and 5754 | IRS / federal | Federal reporting and withholding instructions for gambling and lottery winnings. | September 3, 2026 |
| IRS Publication 525 - Taxable and Nontaxable Income | IRS / federal | Federal income-tax treatment for taxable income categories, including gambling winnings. The latest IRS publication page is checked during federal source review. | September 3, 2026 |
| IRS tax inflation adjustments for tax year 2026 | IRS / federal | Federal tax bracket and inflation-adjustment source used for final tax examples. | September 3, 2026 |
| Minnesota Department of Revenue - Gambling Winnings | State tax authority | Official tax or lottery information used to validate calculator assumptions. | May 19, 2026 |
| Minnesota Department of Revenue - 2026 Income Tax Rates and Brackets | State tax authority | Official tax or lottery information used to validate calculator assumptions. | May 19, 2026 |
| Minnesota Lottery - Claim a Prize | State lottery authority | Official tax or lottery information used to validate calculator assumptions. | May 19, 2026 |
Methodology: Rates and filing assumptions are checked against official sources listed below and summarized for educational planning.
Corrections: Use our corrections policy or contact page to report a source change or page issue.
Responsible play
Lottery draws are chance-based. Predictions, generators, and strategy content do not guarantee winnings — and age or access rules depend on local law and the official operator.
If gambling stops feeling fun, free confidential support is available in United States. The helpline beside this section is a good place to start.
Lottery Valley is an independent publisher, not a lottery operator.
Tax calculator disclaimer
Calculations use standard assumptions. Actual tax depends on filing status, income, deductions, residency, and current law — and using this tool does not create a legal, tax, or advisory relationship. Verify current rules with official sources and a qualified CPA, tax attorney, or financial professional before acting on a large lottery-winning scenario. Questions or corrections: hello@lotteryvalley.com.