Lottery winnings tax in Oregon
Oregon Lottery winnings of $600 or less from a single ticket or play are exempt. Larger Oregon Lottery prizes are fully taxable, and other states' lotteries get no exemption.
On a $50,000 lottery win, $16,000 is withheld at payout. The tax comes to $14,725 ($10,350 federal and $4,375 Oregon), and you get $1,275 back when you file, so you keep $35,275. 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
$35,275
Cash at payout
$34,000
Total tax
$14,725
Over-withheld
$1,275
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $4,375
- Oregon withholding at payout
- $4,000
- Over-withheld
- $1,275
- You keep
- $35,275
$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.
Oregon taxes gambling winnings as ordinary income.
Oregon requires the payer to hold back 8% 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 $14,725 in federal and state tax: an effective rate of 29.5%.
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
- Oregon tax
- Oregon Lottery winnings of $600 or less from a single ticket or play are exempt. Larger Oregon Lottery prizes are fully taxable, and other states' lotteries get no exemption.[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]
- Oregon withholding
- Oregon withholds 8% on lottery winnings of $1,500 or more.[5]
- Gambling losses
- You can deduct gambling losses as an itemized deduction on Schedule OR-A, whether or not you itemized federally, but only up to the gambling winnings Oregon actually taxes. Oregon Lottery prizes of $600 or less are exempt, so they don't count.[6] How the federal 90% loss rule works
- Visitors
- Oregon taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[8]Unverified
- Where to play
- Oregon runs a state lottery.[10]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Oregon.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $120 | $180 | $131 | $1,189 |
| $2,000 | Yes | $160 | $240 | $175 | $1,585 |
| $10,000 | Yes | $3,200 | $1,550 | $875 | $7,575 |
| $50,000 | Yes | $16,000 | $10,350 | $4,375 | $35,275 |
| $100,000 | Yes | $32,000 | $22,114 | $9,119 | $68,767 |
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:[9]
- 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 Oregon tax on lottery winnings?
- Oregon Lottery winnings of $600 or less from a single ticket or play are exempt. Larger Oregon Lottery prizes are fully taxable, and other states' lotteries get no exemption.[1]
- Does Oregon withhold tax from lottery winnings?
- Oregon withholds 8% on lottery winnings of $1,500 or more.[5]
- Do visitors pay Oregon tax on lottery winnings?
- Oregon taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[8]Unverified
More for Oregon
Sources
- [1] Oregon Publication OR-17 (2025) · checked October 2, 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] ORS 316.194, Withholding from lottery prize payments · checked September 22, 2026
- [6] Oregon DOR 2025 Schedule OR-A Instructions, Oregon Itemized Deductions · checked October 2, 2026
- [7] Enrolled Senate Bill 1507 (2026), Section 38 (ORS 316.012) · checked October 2, 2026
- [8] ORS 316.127, Income of nonresident from Oregon sources · checked September 22, 2026
- [9] IRS, Publication 529, Miscellaneous Deductions · checked September 28, 2026