Lottery winnings tax in Hawaii
Hawaii taxes lottery winnings as ordinary income at graduated rates from 1.4% to 11%.
Updated · 2026 tax rules · How we calculate
You keep
$35,850
Cash at payout
$38,000
Total tax
$14,150
Due when you file
$2,150
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $3,800
- Still to pay when you file
- $2,150
- You keep
- $35,850
$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.
Hawaii taxes gambling winnings as ordinary income.
Tax owed ($14,150) minus what was withheld ($12,000). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$50,000 minus $14,150 in federal and state tax: an effective rate of 28.3%.
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
- Hawaii tax
- Hawaii taxes lottery winnings as ordinary income at graduated rates from 1.4% to 11%.[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]
- Hawaii withholding
- No Hawaii withholding requirement for lottery winnings. Tax is due when you file.[5]Unverified
- Gambling losses
- You can deduct gambling losses only as a Hawaii itemized deduction (Worksheet A-6, line 30), up to your winnings. Hawaii's 2026 conformity law keeps the federal 90% limit.[6]
- Visitors
- Hawaii does not tax nonresidents on lottery winnings. Visitors owe tax to their home state instead.[5]Unverified
- Where to play
- Hawaii has no state lottery. A prize from a ticket bought in another state is still taxable income here.[5]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Hawaii.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $114 | $1,206 |
| $2,000 | Yes | $0 | $240 | $152 | $1,608 |
| $10,000 | Yes | $2,400 | $1,550 | $760 | $7,690 |
| $50,000 | Yes | $12,000 | $10,350 | $3,800 | $35,850 |
| $100,000 | Yes | $24,000 | $22,114 | $7,688 | $70,198 |
Assumes a $2 ticket price, so the 300x test is met at every amount shown.
Questions
- How much is Hawaii tax on lottery winnings?
- Hawaii taxes lottery winnings as ordinary income at graduated rates from 1.4% to 11%.[1]Unverified
- Does Hawaii withhold tax from lottery winnings?
- Hawaii has no withholding requirement for lottery winnings. Tax is due when you file.[5]Unverified
- Do visitors pay Hawaii tax on lottery winnings?
- Hawaii does not tax nonresidents on lottery winnings. Visitors owe tax to their home state instead.[5]Unverified
More for Hawaii
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] Wikipedia, Gambling in the United States · checked September 22, 2026
- [6] Hawaii Form N-11 Instructions (2025) · checked September 22, 2026