Lottery winnings tax in Georgia
Georgia taxes lottery winnings as ordinary income at a flat 4.99%.
Updated · 2026 tax rules · How we calculate
You keep
$37,155
Cash at payout
$35,505
Total tax
$12,845
Over-withheld
$1,650
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $2,495
- Georgia withholding at payout
- $2,495
- Over-withheld
- $1,650
- You keep
- $37,155
$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.
Georgia taxes gambling winnings as ordinary income.
Georgia requires the payer to hold back 4.99% 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 $12,845 in federal and state tax: an effective rate of 25.7%.
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
- Georgia tax
- Georgia taxes lottery winnings as ordinary income at a flat 4.99%.[1]Unverified
- 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]
- Georgia withholding
- Georgia withholds 4.99% on lottery winnings over $5,000.[5]Unverified
- Gambling losses
- You can deduct gambling losses only if you itemize. Georgia takes itemized deductions from federal Schedule A, and you must itemize for Georgia if you itemize federally.[6]Unverified
- Visitors
- Georgia taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]
- Where to play
- Georgia 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 Georgia.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $75 | $1,245 |
| $2,000 | Yes | $0 | $240 | $100 | $1,660 |
| $10,000 | Yes | $2,899 | $1,550 | $499 | $7,951 |
| $50,000 | Yes | $14,495 | $10,350 | $2,495 | $37,155 |
| $100,000 | Yes | $28,990 | $22,114 | $4,990 | $72,896 |
Assumes a $2 ticket price, so the 300x test is met at every amount shown.
Questions
- How much is Georgia tax on lottery winnings?
- Georgia taxes lottery winnings as ordinary income at a flat 4.99%.[1]Unverified
- Does Georgia withhold tax from lottery winnings?
- Georgia withholds 4.99% on lottery winnings over $5,000.[5]Unverified
- Do visitors pay Georgia tax on lottery winnings?
- Georgia taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]
More for Georgia
All of Georgia's gambling tax rules · Lottery in every state
Sources
- [1] Office of the Governor of Georgia, Gov. Kemp signs legislation lowering taxes (May 11, 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] Ga. Comp. R. & Regs. 560-7-8-.39 Withholding on proceeds paid by the Georgia Lottery Corporation (LII) · checked September 22, 2026
- [6] Georgia DOR 2025 IT-511 Individual Income Tax Booklet · checked September 22, 2026
- [7] Georgia DOR: Filing Residents, Nonresidents, and Part-Year Residents FAQ · checked September 22, 2026
- [8] Covers, Legal sports betting in the US · checked September 22, 2026