Ohio lottery taxes: the new 2.75% flat rate
Rate checked on November 3, 2026 against the sources listed at the end of this page.
Ohio changed its income tax in 2025 legislation (House Bill 96). For taxable years beginning in 2026, the Ohio Revised Code sets the tax at $332 plus 2.75% of income above $26,050. For a jackpot, that means almost exactly 2.75% of the prize.
The same law lowered the rate the Ohio Lottery withholds: 3.125% in 2025, then 2.75% for 2026 and later.
Take-home pay on a lump-sum prize in Ohio
The table applies the top federal rate of 37% plus 2.75% Ohio 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 | −$27,500 | $602,500 |
| $10.00M | −$3.70M | −$275,000 | $6.03M |
| $100.00M | −$37.00M | −$2.75M | $60.25M |
| $500.00M | −$185.00M | −$13.75M | $301.25M |
| $1.00B | −$370.00M | −$27.50M | $602.50M |
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.
What is withheld when you claim
Under Ohio Revised Code section 5747.062, the Ohio Lottery Commission withholds state income tax from each prize payment that must be reported to the IRS. For 2026 the rate is 2.75%, which matches the flat tax rate, so for most large prizes state withholding is close to the final state bill. Federal withholding is 24% on prizes over $5,000.
2025 vs 2026: why the date you are paid matters
A prize paid in 2025 had 3.125% state tax withheld; the same prize paid in 2026 has 2.75% withheld. For an annuity winner, each yearly payment is taxed and withheld at the rate for the year it is paid.
Local income taxes
Ohio is unusual in how many cities, villages and school districts levy their own income tax. Whether a local tax applies to a lottery prize, and at what rate, depends on where you live. Our figures include state tax only, so ask your city and school district tax office before you claim.
Nonresidents and neighbors
Ohio borders Pennsylvania, Michigan, Indiana, Kentucky and West Virginia, and lottery players cross those lines often. A Pennsylvanian who wins with an Ohio ticket may owe Ohio tax and Pennsylvania tax; an Ohioan who wins with a Pennsylvania ticket owes Pennsylvania's 3.07% as a nonresident. See our Pennsylvania and Michigan guides and ticket state vs home state.
Common questions
What is Ohio's tax rate on lottery winnings in 2026?
2.75% on income above $26,050 (plus a fixed $332), under Ohio Revised Code 5747.02 as amended by House Bill 96. For a large prize this is effectively 2.75%.
How much does the Ohio Lottery withhold?
2.75% state tax for prizes paid in 2026, plus 24% federal on prizes over $5,000.
How much of a $100 million cash prize would I keep in Ohio?
About $60.25 million after 37% federal and 2.75% state tax, before any local tax.