Connecticut State Income Tax Rate on Lottery Winnings 2026 Calculator
The Connecticut state income tax rate on lottery winnings 2026 is 6.99%. This calculator shows you your exact after-tax take-home from Powerball, Mega Millions, and other Connecticut lottery games, including both federal and state taxes.
Connecticut State Tax (6.99% estimate)
Connecticut income tax is progressive. For large wins, a conservative estimate is to model CT state tax using the top rate (6.99%) on the payout amount.
Connecticut Withholding (State)
The Connecticut Lottery withholds Connecticut income tax at 6.99% on reportable Connecticut lottery winnings (for example, many prizes that require a W‑2G). This withholding is a credit on your CT return; your final CT tax can differ based on your full-year income and filing details.
Federal Tax: Withholding vs. Final
Federal withholding is commonly 24% at payout for larger prizes, but the final federal tax depends on your total taxable income and can be higher (up to 37%).
Connecticut Lottery Tax FAQ
Q:What is Connecticut's state tax rate on lottery winnings?
Connecticut income tax is progressive. This calculator uses a conservative 6.99% estimate for CT state tax on the payout amount.
Q:Does Connecticut withhold state tax from lottery prizes?
Yes. The Connecticut Lottery withholds Connecticut income tax at 6.99% on reportable Connecticut lottery winnings (including many prizes reported on Form W‑2G).
Q:Why is the calculator’s 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 Connecticut state tax and shows state withholding separately.