Lottery winnings tax in Idaho
Idaho Lottery prizes under $600 each are exempt; you subtract them on Form 39R, line 16. Larger prizes and other states' lottery prizes are taxable.
Updated · 2026 tax rules · How we calculate
You keep
$37,000
Cash at payout
$35,350
Total tax
$13,000
Over-withheld
$1,650
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $2,650
- Idaho withholding at payout
- $2,650
- Over-withheld
- $1,650
- You keep
- $37,000
$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.
Idaho taxes gambling winnings as ordinary income.
Idaho requires the payer to hold back 5.3% 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 $13,000 in federal and state tax: an effective rate of 26%.
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
- Idaho tax
- Idaho Lottery prizes under $600 each are exempt; you subtract them on Form 39R, line 16. Larger prizes and other states' lottery prizes are taxable.[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]
- Idaho withholding
- Idaho withholds 5.3% whenever federal tax is withheld.[5]
- Gambling losses
- You can deduct gambling losses only if you itemize: Form 40 uses your federal Schedule A deductions, with federal limits, so the 90% limit applies.[6]
- Visitors
- Idaho taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]
- Where to play
- Idaho 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 Idaho.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $80 | $1,241 |
| $2,000 | Yes | $0 | $240 | $106 | $1,654 |
| $10,000 | Yes | $2,930 | $1,550 | $530 | $7,920 |
| $50,000 | Yes | $14,650 | $10,350 | $2,650 | $37,000 |
| $100,000 | Yes | $29,300 | $22,114 | $5,300 | $72,586 |
Assumes a $2 ticket price, so the 300x test is met at every amount shown.
Questions
- How much is Idaho tax on lottery winnings?
- Idaho Lottery prizes under $600 each are exempt; you subtract them on Form 39R, line 16. Larger prizes and other states' lottery prizes are taxable.[1]
- Does Idaho withhold tax from lottery winnings?
- Idaho withholds 5.3% whenever federal tax is withheld.[5]
- Do visitors pay Idaho tax on lottery winnings?
- Idaho taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]
More for Idaho
Sources
- [1] Idaho Form 39R Resident Supplemental Schedule (2025) · 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] Idaho Code 63-3035A Withholding on lottery winnings · checked September 22, 2026
- [6] Idaho Form 40 and Instructions (2025) · checked September 22, 2026
- [7] Idaho Code 63-3026A Idaho taxable income of nonresidents · checked September 22, 2026
- [8] Wikipedia, Gambling in the United States · checked September 22, 2026