Lottery winnings tax in Wisconsin
Wisconsin taxes lottery winnings as ordinary income at graduated rates from 3.5% to 7.65%.
Updated · 2026 tax rules · How we calculate
You keep
$37,059
Cash at payout
$34,175
Total tax
$12,941
Over-withheld
$2,884
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $2,591
- Wisconsin withholding at payout
- $3,825
- Over-withheld
- $2,884
- You keep
- $37,059
$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.
Wisconsin taxes gambling winnings as ordinary income.
Wisconsin requires the payer to hold back 7.65% 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 $12,941 in federal and state tax: an effective rate of 25.9%.
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
- Wisconsin tax
- Wisconsin taxes lottery winnings as ordinary income at graduated rates from 3.5% to 7.65%.[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]
- Wisconsin withholding
- Wisconsin withholds 7.65% on lottery winnings of $2,000 or more.[5]
- Gambling losses
- No. Wisconsin allows no deduction for gambling losses, even if you itemize. If you keep records, the session method lets you report only net gains from winning sessions.[5]
- Visitors
- Wisconsin taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[5]
- Where to play
- Wisconsin runs a state lottery.[6]Unverified
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Wisconsin.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $66 | $1,254 |
| $2,000 | Yes | $153 | $240 | $88 | $1,672 |
| $10,000 | Yes | $3,165 | $1,550 | $471 | $7,979 |
| $50,000 | Yes | $15,825 | $10,350 | $2,591 | $37,059 |
| $100,000 | Yes | $31,650 | $22,114 | $5,241 | $72,645 |
Assumes a $2 ticket price, so the 300x test is met at every amount shown.
Questions
- How much is Wisconsin tax on lottery winnings?
- Wisconsin taxes lottery winnings as ordinary income at graduated rates from 3.5% to 7.65%.[1]
- Does Wisconsin withhold tax from lottery winnings?
- Wisconsin withholds 7.65% on lottery winnings of $2,000 or more.[5]
- Do visitors pay Wisconsin tax on lottery winnings?
- Wisconsin taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[5]
More for Wisconsin
All of Wisconsin'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] Wisconsin Publication 600, Taxation of Gambling Income (03/26) · checked September 22, 2026
- [6] WPR, online sports betting for Wisconsin tribes (AB 601) · checked September 22, 2026