Skip to content
WinningsTax

Lottery winnings tax in Massachusetts

Massachusetts taxes lottery winnings as ordinary income at graduated rates from 5% to 9%.

Updated · 2026 tax rules · How we calculate

$
$
$
$
More options
$

You keep

$37,150

Cash at payout

$35,500

Total tax

$12,850

Over-withheld

$1,650

Form W-2G
Yes

$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.

Federal withholding at payout
$12,000

The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.

Federal tax on the winnings
$10,350

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.

State tax
$2,500

Massachusetts taxes gambling winnings as ordinary income.

Massachusetts withholding at payout
$2,500

Massachusetts requires the payer to hold back 5% for state tax.

Over-withheld
$1,650

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.

You keep
$37,150

$50,000 minus $12,850 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

Massachusetts tax
Massachusetts taxes lottery winnings as ordinary income at graduated rates from 5% to 9%.[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]
Massachusetts withholding
Massachusetts withholds 5% on lottery winnings of $600 or more. Massachusetts withholds 5% whenever federal tax is withheld.[5]
Gambling losses
Massachusetts doesn't follow the federal rule. You can deduct losses at Massachusetts-licensed casinos, sportsbooks and racetracks, up to your winnings from those same sources, without itemizing. Lottery and out-of-state losses don't count.[6]
Visitors
Massachusetts taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]
Where to play
Massachusetts 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 Massachusetts.

WonW-2GWithheldFederal taxState taxYou keep
$1,500No$75$180$75$1,245
$2,000Yes$100$240$100$1,660
$10,000Yes$2,900$1,550$500$7,950
$50,000Yes$14,500$10,350$2,500$37,150
$100,000Yes$29,000$22,114$5,000$72,886

Assumes a $2 ticket price, so the 300x test is met at every amount shown.

Questions

How much is Massachusetts tax on lottery winnings?
Massachusetts taxes lottery winnings as ordinary income at graduated rates from 5% to 9%.[1]Unverified
Does Massachusetts withhold tax from lottery winnings?
Massachusetts withholds 5% on lottery winnings of $600 or more. Massachusetts withholds 5% whenever federal tax is withheld.[5]
Do visitors pay Massachusetts tax on lottery winnings?
Massachusetts taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]

More for Massachusetts

All of Massachusetts's gambling tax rules · Lottery in every state

Sources

  1. [1] Sage Knowledgebase, Massachusetts 2026 withholding (relaying DOR Circular M) · checked September 22, 2026
  2. [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
  3. [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
  4. [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
  5. [5] M.G.L. c. 62B, s. 2 · checked September 22, 2026
  6. [6] M.G.L. c. 62, s. 3.B(a)(18) · checked September 22, 2026
  7. [7] M.G.L. c. 62, s. 5A · checked September 22, 2026
  8. [8] Massachusetts Gaming Commission: Sports Wagering Licensees · checked September 22, 2026