Colorado State Income Tax Rate on Lottery Winnings 2026 Calculator
The Colorado state income tax rate on lottery winnings 2026 is 4.4%. This calculator shows you your exact after-tax take-home from Powerball, Mega Millions, and other Colorado lottery games, including both federal and state taxes.
Colorado State Tax (4.40%)
Colorado applies a flat individual income tax rate (4.40%) to taxable income, including lottery winnings. This calculator applies 4.40% to the payout amount.
Colorado Lottery Withholding (State)
For larger prizes, the Colorado Lottery may withhold 4% for state tax at payout. Because the estimated state tax rate is 4.40%, some winners may owe a small additional amount when filing (depending on their overall return).
Federal Tax
Federal withholding is commonly 24% at payout for larger prizes, but the final federal tax depends on your total income and can be higher (up to 37%).
Colorado Lottery Tax FAQ
Q:What Colorado state tax rate does this calculator use?
It estimates Colorado state income tax at 4.40% (Colorado’s flat individual income tax rate).
Q:Why might my state withholding not match the final state tax?
The Colorado Lottery may withhold 4% for state tax at payout, which can differ from the final 4.40% state tax calculation.
Q:Why is the total tax higher than 24%?
Because 24% is typically federal withholding at payout, not the final federal tax. This calculator estimates final federal tax (up to 37%) plus Colorado state tax.