Oklahoma lottery taxes: 4.5% from 2026
Rate checked on November 5, 2026 against the sources listed at the end of this page.
Oklahoma's legislature cut the top individual income tax rate to 4.5% for tax year 2026 and reduced the number of brackets (HB 2764, approved by the Governor on May 28, 2025). A jackpot sits far above the top bracket, so the state share is 4.5% of the prize.
The same law sets up further quarter-point cuts whenever state revenue growth is certified, so the rate can fall again in later years.
Take-home pay on a lump-sum prize in Oklahoma
The table applies the top federal rate of 37% plus 4.5% Oklahoma 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 | −$45,000 | $585,000 |
| $10.00M | −$3.70M | −$450,000 | $5.85M |
| $100.00M | −$37.00M | −$4.50M | $58.50M |
| $500.00M | −$185.00M | −$22.50M | $292.50M |
| $1.00B | −$370.00M | −$45.00M | $585.00M |
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.
Withholding: check with the Oklahoma Lottery
Federal tax (24%) is withheld from prizes over $5,000, and the Oklahoma Lottery's claim form asks for a Social Security number for prizes above that amount. Oklahoma Lottery rules also allow the Lottery to withhold state tax and debts owed to the state. We could not read the state withholding percentage on an official page, and unofficial sites disagree, so check with the Oklahoma Lottery Commission when you claim. Whatever is withheld, the tax you owe on a jackpot is 4.5%.
Nonresidents: check with the state
We could not confirm on an official page how Oklahoma taxes a nonresident who wins with an Oklahoma ticket. Texans in particular should ask before claiming: Texas has no income tax, so any Oklahoma tax would not be offset at home. See our Texas guide and ticket state vs home state.
Local taxes
Oklahoma cities and counties do not levy an income tax.
Annuity winners: watch the rate each year
Because of the revenue triggers, a yearly annuity payment may be taxed at a lower rate than 4.5% in a later year. We will update this page when a new rate is certified.
Common questions
What is Oklahoma's tax rate on lottery winnings in 2026?
The top rate of 4.5%, down from 4.75%, under HB 2764 (2025).
How much state tax does the Oklahoma Lottery withhold?
We could not confirm the percentage on an official page. Ask the Oklahoma Lottery Commission when you claim.
How much of a $10 million cash prize would I keep in Oklahoma?
About $5.85 million after 37% federal and 4.5% state tax.
Sources
- IRS Topic 419: Gambling income and losses
- IRS Instructions for Forms W-2G and 5754
- Oklahoma Legislature: HB 2764 bill summary (top rate 4.75% to 4.5% from tax year 2026, PDF)
- Oklahoma Legislature: HB 2764 bill history (approved by the Governor May 28, 2025)
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