Lottery winnings tax in Connecticut
Connecticut taxes lottery winnings as ordinary income at graduated rates from 2% to 6.99%.
Updated · 2026 tax rules · How we calculate
You keep
$36,950
Cash at payout
$34,505
Total tax
$13,050
Over-withheld
$2,445
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $2,700
- Connecticut withholding at payout
- $3,495
- Over-withheld
- $2,445
- You keep
- $36,950
$50,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
Connecticut taxes gambling winnings as ordinary income.
Connecticut requires the payer to hold back 6.99% for state tax.
More was withheld than these winnings add to your tax. The difference reduces what you owe on the rest of your return, or comes back as a refund.
$50,000 minus $13,050 in federal and state tax: an effective rate of 26.1%.
An estimate for 2026, not tax advice. It treats this win as your only gambling income for the year and leaves out local income taxes. Nothing you enter leaves your browser.
The rules
- Connecticut tax
- Connecticut taxes lottery winnings as ordinary income at graduated rates from 2% to 6.99%.[1]
- Federal tax form
- Lottery prizes of $2,000 or more that are at least 300 times the ticket price are reported on a W-2G. The threshold was $600 before 2026.[2]
- Federal withholding
- 24% is withheld from lottery prizes of more than $5,000 (minus the ticket price). No 300x test applies to lotteries.[4]
- Connecticut withholding
- Connecticut withholds 6.99% on lottery winnings of $2,000 or more.[5]Unverified
- Gambling losses
- No. Connecticut allows no deduction for gambling losses, even when you deduct them federally.[6]
- Visitors
- Connecticut taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]
- Where to play
- Connecticut runs a state lottery.[8]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Connecticut.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $68 | $1,253 |
| $2,000 | Yes | $140 | $240 | $90 | $1,670 |
| $10,000 | Yes | $3,099 | $1,550 | $500 | $7,950 |
| $50,000 | Yes | $15,495 | $10,350 | $2,700 | $36,950 |
| $100,000 | Yes | $30,990 | $22,114 | $5,675 | $72,211 |
Assumes a $2 ticket price, so the 300x test is met at every amount shown.
Questions
- How much is Connecticut tax on lottery winnings?
- Connecticut taxes lottery winnings as ordinary income at graduated rates from 2% to 6.99%.[1]
- Does Connecticut withhold tax from lottery winnings?
- Connecticut withholds 6.99% on lottery winnings of $2,000 or more.[5]Unverified
- Do visitors pay Connecticut tax on lottery winnings?
- Connecticut taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]
More for Connecticut
All of Connecticut's gambling tax rules · Lottery in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
- [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [5] CT DRS IP 2015(23), Income Tax Treatment of State Lottery Winnings · checked September 22, 2026
- [6] CT DRS IP 2011(27), Income Tax Treatment of Gambling Winnings Other Than State Lottery Winnings · checked September 22, 2026
- [7] CT DRS - Nonresident and Part-Year Resident Tax Information · checked September 22, 2026
- [8] American Gaming Association, State of the States 2025 · checked September 22, 2026