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Michigan

Michigan Lottery Tax Calculator - 4.25% State Tax

The Michigan state income tax rate on lottery winnings in 2026 is 4.25%. Calculate your exact take-home amount from any Michigan lottery game after federal and state taxes.

Michigan State Income Tax: 4.25%

In addition to federal taxes, Michigan residents owe 4.25% state tax on lottery winnings.

Winning Amount

$
60%

Your Take-Home (After All Taxes)

$176,250,000
Effective Tax Rate: 41.3% (Federal 37% + State 4.25%)

Lump Sum Amount

$300,000,000

(60% of advertised)

Fed Withholding

$72,000,000

24% immediate

Additional Federal Tax

$39,000,000

Tax gap (37% - 24%)

Michigan State Tax

$12,750,000

4.25% estimated state tax rate

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Lottery tax rates vary by state. Select another state below to see its lottery tax calculator.

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Showing 24 states. Use the search above to find more.

Disclaimer: All calculators on this website are provided for informational and illustrative purposes only. The results do not constitute professional advice (including legal, tax, financial, medical, or other advice). Despite careful programming, we assume no liability for the accuracy, completeness, or timeliness of the results. For matters requiring professional advice, we recommend consulting an appropriate specialist (e.g., a tax advisor, lawyer, accountant, or physician).

1

How Michigan Lottery Taxes Work

Michigan lottery winnings are subject to federal income tax and Michigan individual income tax. This calculator uses a conservative top-bracket federal estimate (37%) and shows the typical federal withholding (24%) as a separate line item. Michigan state tax is estimated at 4.25% of the payout amount.
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Michigan Tax Calculation

Lump Sum = Advertised Γ— 60%. Federal Tax = Lump Sum Γ— 37%. State Tax = Lump Sum Γ— 4.25%. Take-Home = Lump Sum - (Federal + State Tax).

Key Terms

Lump Sum

60% of advertised jackpot (cash value estimate)

Federal Withholding

24% taken by lottery immediately

Tax Gap

Difference between 24% withheld and 37% owed federally

State Tax

Michigan state income tax: 4.25%

Michigan State Income Tax Rate on Lottery Winnings 2026 Calculator

The Michigan state income tax rate on lottery winnings 2026 is 4.25%. This calculator shows you your exact after-tax take-home from Powerball, Mega Millions, and other Michigan lottery games, including both federal and state taxes.

Michigan State Tax (4.25%)

Michigan taxes lottery winnings as part of your taxable income. A 4.25% estimate is applied to the payout amount (lump sum cash value or the simplified annuity total).

Federal Tax: Withholding vs. Actual

For larger prizes, the lottery typically withholds 24% for federal tax. Your actual federal income tax can be higher depending on your overall taxable income (up to 37% at the top bracket).

Estimated Total Tax Burden

A common high-level estimate for large wins is federal tax (up to 37%) plus Michigan state tax (4.25%), before considering deductions/credits and your full tax situation.

Michigan Lottery Tax FAQ

Q:Does Michigan tax lottery winnings?

Yes. Michigan taxes lottery winnings as part of your income (Michigan individual income tax).

Q:What Michigan state tax rate does this calculator use for 2026?

It estimates Michigan state tax at 4.25% of the payout amount (lump sum cash value or simplified annuity total).

Q:Why does the calculator show a much higher total tax than 24%?

Because 24% is typically the federal withholding at payout, not the final federal tax. The calculator also estimates final federal tax (up to 37%) plus Michigan state tax (4.25%).