Lottery winnings tax in Ohio
Ohio taxes lottery winnings as ordinary income at graduated rates from 0% to 2.75%.
On a $50,000 lottery win, $13,375 is withheld at payout. The tax comes to $11,725 ($10,350 federal and $1,375 Ohio), and you get $1,650 back when you file, so you keep $38,275. That's for a single filer with $60,000 of other income and no gambling losses.
Updated · 2026 tax rules · How we calculate
You keep
$38,275
Cash at payout
$36,625
Total tax
$11,725
Over-withheld
$1,650
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $1,375
- Ohio withholding at payout
- $1,375
- Over-withheld
- $1,650
- You keep
- $38,275
$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.
Ohio taxes gambling winnings as ordinary income.
Ohio requires the payer to hold back 2.75% 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 $11,725 in federal and state tax: an effective rate of 23.5%.
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
- Ohio tax
- Ohio taxes lottery winnings as ordinary income at graduated rates from 0% to 2.75%.[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]
- Ohio withholding
- Ohio withholds 2.75% on lottery winnings of $2,000 or more.[5]
- Gambling losses
- Ohio has no deduction for gambling losses. Its income tax starts from federal adjusted gross income, and the Department of Taxation says federal itemized deductions such as gambling losses can't be deducted on the Ohio return.[6] How the federal 90% loss rule works
- Visitors
- Ohio taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]
- Where to play
- Ohio runs a state lottery.[9]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Ohio.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $41 | $1,279 |
| $2,000 | Yes | $55 | $240 | $55 | $1,705 |
| $10,000 | Yes | $2,675 | $1,550 | $275 | $8,175 |
| $50,000 | Yes | $13,375 | $10,350 | $1,375 | $38,275 |
| $100,000 | Yes | $26,750 | $22,114 | $2,750 | $75,136 |
Assumes a $2 ticket price, so the 300x test is met at every amount shown.
Records to keep for lottery winnings
Prizes are measured net of the ticket price. Nearly any prize large enough to report clears the 300x test.
Losses only count if you can prove them. For lottery winnings, the IRS suggests keeping:[10]
- Your ticket purchases, with dates, winnings and losses
- Unredeemed tickets, payment slips and winnings statements
All of this goes alongside the diary the IRS expects for every kind of gambling: keeping gambling records the IRS will accept.
Questions
- How much is Ohio tax on lottery winnings?
- Ohio taxes lottery winnings as ordinary income at graduated rates from 0% to 2.75%.[1]
- Does Ohio withhold tax from lottery winnings?
- Ohio withholds 2.75% on lottery winnings of $2,000 or more.[5]
- Do visitors pay Ohio tax on lottery winnings?
- Ohio taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]
More for Ohio
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] Ohio Rev. Code 5747.063 (as amended by HB 96, 136th GA) · checked September 22, 2026
- [6] Ohio Department of Taxation FAQ: Income - General Information · checked October 2, 2026
- [7] 2025 Ohio IT 1040 / SD 100 Instructions · checked October 2, 2026
- [8] Ohio Revised Code 5747.01 · checked October 2, 2026
- [9] Fox Sports, Where is sports betting legal? · checked September 22, 2026
- [10] IRS, Publication 529, Miscellaneous Deductions · checked September 28, 2026