Idaho Lottery Tax Calculator - 6.93% State Tax

Idaho imposes a flat 6.925% state income tax on all lottery winnings. On a $60 million lump-sum jackpot, this 6.925% equals roughly $4.15 million in state taxes. Idaho's rate places it in the upper-middle tier nationally. States like Colorado (4%) and Utah (5%) are lower, while Idaho is comparable to Montana (~6.9%). No-tax states (Alaska, California, Delaware, Florida, Nevada, New Hampshire, North Dakota, South Dakota, Tennessee, Texas, Washington, Wyoming) save winners millions.

On a $100 million advertised jackpot: (1) Lump sum is ~60% = $60 million. (2) Federal tax at 37% = $22.2 million. (3) Idaho state tax at 6.925% = ~$4.15 million. (4) Total taxes = ~$26.35 million. (5) Federal withholding already taken = $14.4 million (24%). (6) Additional tax due by April 15th = ~$11.95 million. You'd take home roughly $33.65 million.

The Idaho Lottery generates revenue for state education and public programs. Idaho's economy relies on taxation to fund schools, infrastructure, and public services in a mountainous state with dispersed communities. The ~6.9% lottery tax is part of Idaho's broader fiscal model.

When you claim an Idaho lottery prize: (1) Federal withholding of 24% is deducted by the lottery (IRS-mandated). (2) Idaho withholds 6.925% for state taxes. Your actual federal liability is 37%, leaving a 13% federal gap (37% owed minus 24% withheld). The Idaho state tax is already deducted at payment.

Idaho taxes both payout types at 6.925%. A lump sum means a one-time large federal tax hit at 37%. An annuity spreads payments over 30 years, potentially helping manage federal tax brackets. Some winners prefer the annuity to spread the combined tax burden across decades. Others take the lump sum for immediate control.

Idaho's 6.925% sits in the upper range among Mountain West states: (1) No tax (1 state): Wyoming. (2) Lower rates: Colorado (4%), Utah (5%). (3) Comparable rates: Montana (6.9%). Idaho's ~6.9% is on the higher side for the region.

If you win an Idaho lottery prize: (1) Don't claim immediately—consult a tax attorney and CPA first. (2) Calculate your federal tax gap. (3) Arrange financing to cover the federal gap. (4) Understand Idaho's 6.925% will be automatically withheld. (5) Decide between lump sum and annuity based on federal and personal factors. (6) Consider privacy structures if permitted. (7) Plan post-claim investments to manage federal brackets. (8) Maintain Idaho residency to preserve tax treatment.

The Idaho Lottery offers Powerball, Mega Millions, and state games. Regardless of which game you play, Idaho's 6.925% state tax applies uniformly to all lottery prizes. This consistency makes tax planning predictable.