Lottery winnings tax in Utah
Utah taxes lottery winnings as ordinary income at a flat 4.45%.
Updated · 2026 tax rules · How we calculate
You keep
$37,425
Cash at payout
$38,000
Total tax
$12,575
Due when you file
$575
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $2,225
- Still to pay when you file
- $575
- You keep
- $37,425
$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.
Utah taxes gambling winnings as ordinary income.
Tax owed ($12,575) minus what was withheld ($12,000). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$50,000 minus $12,575 in federal and state tax: an effective rate of 25.2%.
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
- Utah tax
- Utah taxes lottery winnings as ordinary income at a flat 4.45%.[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]
- Utah withholding
- No Utah withholding requirement for lottery winnings. Tax is due when you file.[5]Unverified
- Gambling losses
- Effectively no. Utah has no itemized deduction; federal itemized deductions, including gambling losses, count only toward a small nonrefundable credit worth 6% of them that phases out as income rises.[6]
- Visitors
- Utah does not tax nonresidents on lottery winnings. Visitors owe tax to their home state instead.[5]Unverified
- Where to play
- Utah has no state lottery. A prize from a ticket bought in another state is still taxable income here.[5]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Utah.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $67 | $1,253 |
| $2,000 | Yes | $0 | $240 | $89 | $1,671 |
| $10,000 | Yes | $2,400 | $1,550 | $445 | $8,005 |
| $50,000 | Yes | $12,000 | $10,350 | $2,225 | $37,425 |
| $100,000 | Yes | $24,000 | $22,114 | $4,450 | $73,436 |
Assumes a $2 ticket price, so the 300x test is met at every amount shown.
Questions
- How much is Utah tax on lottery winnings?
- Utah taxes lottery winnings as ordinary income at a flat 4.45%.[1]
- Does Utah withhold tax from lottery winnings?
- Utah has no withholding requirement for lottery winnings. Tax is due when you file.[5]Unverified
- Do visitors pay Utah tax on lottery winnings?
- Utah does not tax nonresidents on lottery winnings. Visitors owe tax to their home state instead.[5]Unverified
More for Utah
Sources
- [1] EY Tax News, Utah law lowers state income tax rate retroactive to January 1, 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] Utah Constitution Art. VI, Sec. 27 · checked September 22, 2026
- [6] 2025 Utah TC-40 Instructions · checked September 22, 2026