Lottery winnings tax in New York
New York taxes lottery winnings as ordinary income at graduated rates from 3.9% to 10.9%.
Updated · 2026 tax rules · How we calculate
You keep
$36,843
Cash at payout
$32,550
Total tax
$13,157
Over-withheld
$4,293
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $2,807
- New York withholding at payout
- $5,450
- Over-withheld
- $4,293
- You keep
- $36,843
$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.
New York taxes gambling winnings as ordinary income.
New York requires the payer to hold back 10.9% 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 $13,157 in federal and state tax: an effective rate of 26.3%.
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
- New York tax
- New York taxes lottery winnings as ordinary income at graduated rates from 3.9% to 10.9%.[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]
- New York withholding
- New York withholds 10.9% on lottery winnings over $5,000. New York withholds 10.9% whenever federal tax is withheld.[5]
- Gambling losses
- You can deduct gambling losses only as a New York itemized deduction, which follows federal rules as they stood before the 2017 tax law.[6]Unverified
- Visitors
- New York taxes nonresidents on lottery winnings over $5,000 won there, so visitors may need to file a nonresident return.[7]
- Where to play
- New York 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 New York.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $81 | $1,239 |
| $2,000 | Yes | $0 | $240 | $108 | $1,652 |
| $10,000 | Yes | $3,490 | $1,550 | $540 | $7,910 |
| $50,000 | Yes | $17,450 | $10,350 | $2,807 | $36,843 |
| $100,000 | Yes | $34,900 | $22,114 | $5,757 | $72,129 |
Assumes a $2 ticket price, so the 300x test is met at every amount shown.
Questions
- How much is New York tax on lottery winnings?
- New York taxes lottery winnings as ordinary income at graduated rates from 3.9% to 10.9%.[1]
- Does New York withhold tax from lottery winnings?
- New York withholds 10.9% on lottery winnings over $5,000. New York withholds 10.9% whenever federal tax is withheld.[5]
- Do visitors pay New York tax on lottery winnings?
- New York taxes nonresidents on lottery winnings over $5,000 won there, so visitors may need to file a nonresident return.[7]
More for New York
All of New York'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] NY Tax Law §671(b) · checked September 22, 2026
- [6] NY Tax Law §615 · checked September 22, 2026
- [7] NY Tax Law §631 · checked September 22, 2026
- [8] New York State Gaming Commission · checked September 22, 2026