Minnesota Lottery Tax Calculator - 9.85% State Tax

The Minnesota state income tax rate on lottery winnings in 2026 is 9.85%. Calculate your exact take-home amount from any Minnesota lottery game after federal and state taxes.

Minnesota State Income Tax: 9.85%

In addition to federal taxes, Minnesota residents owe 9.85% state tax on lottery winnings.

Winning Amount

Advertised Jackpot

Payout Type

Cash Value Factor (%)

60%

Your Take-Home (After All Taxes)

$159,450,000

Effective Tax Rate: 46.9% (Federal 37% + State 9.85%)

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%)

Minnesota State Tax

$29,550,000

9.85% estimated state tax rate

Withheld at payout: $21,750,000 (7.25%)

Estimated additional state due: $7,800,000

Calculator inputs stay on your device (local processing).

Find your state

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

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).

How Minnesota Lottery Taxes Work

Minnesota income tax is progressive (top rate 9.85% in 2026). Minnesota Lottery withholds 7.25% state tax on prizes over $5,000, and withholds 24% federal tax on prizes over $5,000 for most winners. This calculator uses a conservative top-bracket federal estimate (37%) and a conservative top-rate Minnesota estimate (9.85%), while separately showing the Minnesota state withholding amount (7.25%) so you can see any estimated gap.

Minnesota Tax Calculation

Lump Sum = Advertised × 60%. Federal Tax = Lump Sum × 37%. State Tax = Lump Sum × 9.85%. 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

Minnesota state income tax: 9.85%

Minnesota State Income Tax Rate on Lottery Winnings 2026 Calculator

The Minnesota state income tax rate on lottery winnings 2026 is 9.85%. This calculator shows you your exact after-tax take-home from Powerball, Mega Millions, and other Minnesota lottery games, including both federal and state taxes.

Minnesota State Tax (9.85% estimate)

Minnesota income tax is progressive. For large wins, a conservative estimate is to model Minnesota state tax using the top rate (9.85%) on the payout amount.

Minnesota Lottery State Withholding (7.25%)

Minnesota Lottery withholds 7.25% state tax on prizes over $5,000. Withholding is a credit; your final Minnesota tax depends 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%).

Minnesota Lottery Tax FAQ

Q:Does Minnesota tax lottery winnings?

Yes. Minnesota taxes gambling winnings, including lottery winnings.

Q:What Minnesota state withholding applies to lottery prizes?

Minnesota Lottery withholds 7.25% state tax on prizes over $5,000.

Q:Why can the estimated Minnesota tax be higher than 7.25%?

Because 7.25% is the lottery’s withholding at payout. Minnesota income tax is progressive; this calculator uses a conservative top-rate estimate (9.85%) to show potential final liability.