Oregon lottery taxes: 9.9% owed, 8% withheld
Rate checked on November 5, 2026 against the sources listed at the end of this page.
Oregon's income tax is graduated (4.75%, 6.75%, 8.75% and 9.9%). The Department of Revenue's 2026 estimating charts apply the 9.9% rate to income over $125,000 for a single filer, so a jackpot is taxed at 9.9% almost from the first dollar.
Withholding is lower. Since 2018, Oregon law has required the Oregon Lottery to withhold 8% state tax from single-ticket prizes of $1,500 or more.
Take-home pay on a lump-sum prize in Oregon
The table applies the top federal rate of 37% plus 9.9% Oregon state tax (Portland-area Metro and Multnomah County taxes not included). 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 | −$99,000 | $531,000 |
| $10.00M | −$3.70M | −$990,000 | $5.31M |
| $100.00M | −$37.00M | −$9.90M | $53.10M |
| $500.00M | −$185.00M | −$49.50M | $265.50M |
| $1.00B | −$370.00M | −$99.00M | $531.00M |
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.
The 1.9% gap
On a prize over $5,000 the Oregon Lottery withholds 24% federal and 8% state tax. A jackpot is taxed at up to 37% federal and 9.9% state, so on a $10 million cash prize expect about $190,000 of Oregon tax (1.9%) still due when you file, plus the federal balance. Video Lottery prizes have only the 8% state tax withheld. Nonresident aliens have 30% federal and 8% Oregon tax withheld.
Portland-area local taxes: not included in the calculator
Two local income taxes apply to many residents of the Portland area, and both start from Oregon taxable income:
- Metro Supportive Housing Services tax: 1% of taxable income over $125,000 (single) or $200,000 (joint) for residents of the Metro district. The thresholds are adjusted for inflation from 2026.
- Multnomah County Preschool for All tax: 1.5% over $125,000 (single) or $200,000 (joint), and 3% in total on income over $250,000 (single) or $400,000 (joint). The rate is scheduled to rise by 0.8 points in 2027.
A Multnomah County resident inside the Metro district could therefore pay about 4% on most of a jackpot on top of the 9.9% state rate. These local taxes are not included in our calculator or in the table above. Check with Metro and Multnomah County how they apply to your prize.
Nonresidents: Washington and California neighbors
Oregon taxes nonresidents on Oregon Lottery winnings over $600 per ticket. The Department of Revenue lists single-ticket winnings between $600 and $1,500 as Oregon-source income that nonresidents must report (no tax is withheld on those), and 8% is withheld from $1,500 up. That matters for Washington residents: Washington has no income tax, but a winning Oregon ticket is still taxed by Oregon. See our Washington, California and Nevada guides and ticket state vs home state.
Common questions
What is Oregon's tax rate on lottery winnings in 2026?
Prizes are taxed at Oregon's graduated rates; a jackpot is taxed at the top rate of 9.9%.
How much does the Oregon Lottery withhold?
8% state tax on prizes of $1,500 or more, plus 24% federal on prizes over $5,000. The rest of the 9.9% is due when you file.
Do Portland-area winners owe more?
Often, yes. The Metro Supportive Housing Services tax (1%) and the Multnomah County Preschool for All tax (1.5% to 3%) apply above $125,000 single / $200,000 joint. Our calculator does not include them.
How much of a $10 million cash prize would I keep in Oregon?
About $5.31 million after 37% federal and 9.9% state tax, before any Metro or Multnomah County tax.
Sources
- IRS Topic 419: Gambling income and losses
- IRS Instructions for Forms W-2G and 5754
- Oregon DOR: Publication OR-ESTIMATE 2026, rate charts (9.9% top rate) and nonresident lottery winnings (PDF)
- Oregon Lottery: Claim a prize (8% state withholding from $1,500)
- Metro: Supportive Housing Services taxes FAQ (1% over $125,000 / $200,000)
Calculate for Oregon: Powerball · Mega Millions · any prize amount