Michigan (MI) Lottery
Tax & Payout Calculator

Yes. Michigan taxes lottery winnings at 4.25%, and federal income tax applies too.

Michigan taxes lottery winnings at 4.25%, on top of federal income tax. 24% federal and 4.25% state tax are withheld from prizes over $5,000; smaller prizes are paid in full. For a winner who isn't a U.S. citizen or resident, 30% federal and 4.25% state tax are withheld from every prize.

Nothing is withheld: the Michigan Lottery pays the full $1,000. The prize is still taxable income, taxed at your federal rate when you file: from 10% to 37%, depending on your income. Michigan taxes it too, at 4.25%.

The Michigan Lottery withholds $2,825 and pays you $7,175. The prize is still taxable income, taxed at your federal rate when you file: from 10% to 37%, depending on your income. Michigan taxes it too, at 4.25%.

The Michigan Lottery withholds $282,500 and pays you $717,500. The prize is still taxable income, taxed at your federal rate when you file: from 10% to 37%, depending on your income. Michigan taxes it too, at 4.25%.

Lottery winnings are taxed as income. Federal rates run from 10% to 37%, and in 2026 the top rate starts at $640,600 for a single filer and $768,700 for a married couple filing jointly. What's withheld when you're paid is a down payment: on a large prize, you'll likely owe more when you file.

Yes, for prizes of $2,000 or more: the lottery reports them to the IRS on Form W-2G. The threshold was $600 before 2026. Smaller prizes are still taxable income you report.

The next Powerball jackpot is an estimated $538 million, or $220.6 million as one cash payment. After federal tax and Michigan's 4.25%, the cash leaves a single winner about $129.7 million. Taken as 30 yearly payments, it pays about $317.6 million after taxes in all.

The next Mega Millions jackpot is an estimated $385 million, or $154.8 million as one cash payment. After federal tax and Michigan's 4.25%, the cash leaves a single winner about $91 million. Taken as 30 yearly payments, it pays about $227.7 million after taxes in all.

The cash option is one payment, smaller than the advertised jackpot: the next Powerball jackpot's is 41% of it, all taxed in one year. The annuity pays the full jackpot in 30 yearly payments, each 5% larger than the last, each taxed in the year it's paid. In Michigan, you choose within 60 days of claiming the prize.

Yes, the same as draw game prizes: scratch-off winnings are taxable income, and 24% federal and 4.25% state tax are withheld from prizes over $5,000. Michigan taxes them at 4.25%.