Wisconsin lottery taxes: 7.65% from the first big check
Rate checked on November 4, 2026 against the sources listed at the end of this page.
Wisconsin has a graduated income tax with a top rate of 7.65%. Unlike most states, it does not wait for the federal $5,000 line or use a lower flat withholding rate: Wisconsin law sets lottery withholding at the highest individual rate, 7.65%, on any prize of $2,000 or more.
Take-home pay on a lump-sum prize in Wisconsin
The table applies the top federal rate of 37% plus 7.65% Wisconsin 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 | −$76,500 | $553,500 |
| $10.00M | −$3.70M | −$765,000 | $5.54M |
| $100.00M | −$37.00M | −$7.65M | $55.35M |
| $500.00M | −$185.00M | −$38.25M | $276.75M |
| $1.00B | −$370.00M | −$76.50M | $553.50M |
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.
Withholding from $2,000, on the whole prize
The Department of Revenue's Publication 600 (revised March 2026) says the $2,000 test applies to the total prize, not to each person's share. A $3,000 prize split among three friends still has 7.65% withheld. State withholding applies even when federal withholding does not, so a prize between $2,000 and $5,000 can have Wisconsin tax taken out and no federal tax taken out.
Publication 600 also notes that federal W-2G reporting rises to $2,000 for 2026, so the federal reporting line and Wisconsin's withholding line now line up.
Nonresidents pay Wisconsin tax
Publication 600 is direct: if you are a nonresident, Wisconsin Lottery winnings are taxable to Wisconsin. You must file Form 1NPR if your Wisconsin gross income is $2,000 or more. That covers Minnesotans, Iowans and Illinois residents who buy across the line. See our Minnesota, Illinois and Michigan guides and ticket state vs home state.
Local taxes
Wisconsin has no county or city income tax.
Common questions
What is Wisconsin's tax rate on lottery winnings?
Prizes are taxed as income at Wisconsin's graduated rates. A jackpot is taxed at the top rate, 7.65%, which is also the withholding rate.
When does the Wisconsin Lottery withhold state tax?
On prizes of $2,000 or more (the total prize, not each share), even if no federal tax is withheld.
How much of a $100 million cash prize would I keep in Wisconsin?
About $55.35 million after 37% federal and 7.65% state tax.
Sources
- IRS Topic 419: Gambling income and losses
- IRS Instructions for Forms W-2G and 5754
- Wisconsin DOR: Publication 600, Wisconsin taxation of lottery winnings (rev. 03/26, PDF)
Calculate for Wisconsin: Powerball · Mega Millions · any prize amount