Connecticut lottery taxes: 6.99% for everyone
Rate checked on November 5, 2026 against the sources listed at the end of this page.
Connecticut has graduated income tax rates with a top rate of 6.99%. Its phase-out and "benefit recapture" rules take back the lower brackets from high earners, so a large prize is in practice taxed at 6.99% on most of the income.
Withholding matches the rate. The Department of Revenue Services' 2026 payer guide says the Connecticut Lottery Corporation withholds 6.99% from all payments of reportable Connecticut Lottery winnings.
Take-home pay on a lump-sum prize in Connecticut
The table applies the top federal rate of 37% plus 6.99% Connecticut tax. Amounts are the cash (lump-sum) value you receive, not the advertised annuity jackpot.
| Cash prize | Federal (37%) | State | You keep |
|---|---|---|---|
| $1.00M | −$370,000 | −$69,900 | $560,100 |
| $10.00M | −$3.70M | −$699,000 | $5.60M |
| $100.00M | −$37.00M | −$6.99M | $56.01M |
| $500.00M | −$185.00M | −$34.95M | $280.05M |
| $1.00B | −$370.00M | −$69.90M | $560.10M |
Federal figure is the total owed at the top bracket. At claim time only 24% is withheld; the rest is due when you file. Smaller prizes can fall into lower brackets, so the real federal bill may be less.
When the 6.99% is withheld
The CT Lottery withholds state tax from winnings that are reportable for federal purposes ($600 or more and at least 300 times the wager) or subject to federal withholding (over $5,000), even when no federal tax is withheld. So a $1,000 prize can have Connecticut tax taken out and no federal tax. Because the withholding equals the top rate, a jackpot winner usually owes little more to Connecticut at filing; the federal gap between 24% withheld and up to 37% owed is the bigger amount to set aside.
Residency does not matter
The CT Lottery states that Connecticut income tax is required on all CT Lottery winnings regardless of state residency, and the 2026 payer guide applies the 6.99% to residents and nonresidents alike. Nonresident aliens have 30% federal and 6.99% Connecticut tax withheld. New York and Massachusetts residents who buy in Connecticut generally get a credit at home for the Connecticut tax; see our New York and Massachusetts guides and ticket state vs home state.
Local taxes
Connecticut towns and cities do not levy an income tax.
What did not change
The 2024 tax cuts lowered only the two bottom brackets (3% to 2% and 5% to 4.5%). The 6.99% top rate is unchanged for 2026.
Common questions
What is Connecticut's tax rate on lottery winnings in 2026?
A jackpot is taxed at the top rate of 6.99%, which is also the CT Lottery withholding rate.
Does the CT Lottery withhold tax from nonresidents?
Yes. The 6.99% applies to residents and nonresidents alike (DRS IP 2026(8)).
How much of a $10 million cash prize would I keep in Connecticut?
About $5.60 million after 37% federal and 6.99% state tax.
Sources
- IRS Topic 419: Gambling income and losses
- IRS Instructions for Forms W-2G and 5754
- Connecticut DRS: IP 2026(8), 2026 withholding guide for payers of gambling winnings (6.99%, PDF)
- CT Lottery: Tax information (6.99%, regardless of state residency)
Calculate for Connecticut: Powerball · Mega Millions · any prize amount