Minnesota State Tax on Lottery Winnings
Free Minnesota lottery tax calculator for Powerball and Mega Millions. Minnesota taxes lottery winnings at 9.85% (top marginal rate).
Current Powerball $516M jackpot, single filer
$113.04M
Actual take-home: 21.9% of what they advertise
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Standard deduction: $16,100. All lottery income is taxed at your individual rate. This is the most common filing status for winners.
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What to Know Before Claiming a Jackpot in Minnesota
Minnesota taxes lottery winnings at a top rate of 9.85%, one of the higher rates in the country. Privacy works automatically here. State law makes the name and city of a winner of more than $10,000 private data by default, so a jackpot winner does not have to take any special action to stay out of the public record. They can choose to opt in to publicity if they want the attention. You have a full year to claim the prize. Lottery proceeds split between the state General Fund and Minnesota's Environment and Natural Resources Trust Fund, which has funded more than 1,700 conservation projects since 1991.
- State tax rate (2026)
- 9.85% top rate
- Deadline to claim
- One year from the draw date
- Anonymity
- Automatic by default. State law makes the name and city of a winner of more than $10,000 private data unless the winner opts in to publicity
- Where jackpots are claimed
- In person at Minnesota Lottery headquarters in Roseville, by appointment, for prizes above $50,000
- What proceeds fund
- The state General Fund (about 60%) and the Environment and Natural Resources Trust Fund (about 40%), which has funded more than 1,700 conservation projects since 1991
Sources: Minnesota Dept. of Revenue: Income Tax Rates and Brackets · Minnesota Lottery: Lottery Anonymity in Minnesota · Minnesota Lottery: Claim a Prize · Minnesota Lottery: What Do Lottery Proceeds Actually Fund?
Minnesota Lottery Winnings Tax Overview
The Minnesota state tax on lottery winnings is 9.85%, which sits in the upper tier among states that collect a lottery tax. Ranked number 6 out of 41 taxed states, Minnesota pulls a meaningful cut from any Powerball or Mega Millions payout before the federal lottery tax applies. The Minnesota lottery tax calculator above breaks down every dollar of your potential lump sum prize, from the advertised jackpot to the final after tax number that lands in your account.
How the Minnesota Lottery Payout Calculator Works
In Minnesota, the lottery payout calculation begins with the lump sum cash option, which equals roughly 45% of the advertised jackpot. The IRS withholds 24% federal lottery tax at the moment of payout, but a Powerball or Mega Millions prize pushes the winner into the 37% top federal bracket, so additional federal tax comes due at filing. On top of that, Minnesota taxes lottery winnings at 9.85% of the full lump sum. The lottery payout calculator above runs all of this math for you, using IRS 2026 brackets and the top marginal Minnesota lottery tax rate.
How Minnesota Compares to Other Lottery Tax States
Minnesota's 9.85% lottery tax rate ranks number 6 out of 41 taxed states. States with a higher lottery tax rate than Minnesota include Washington DC and Oregon. States with a lower rate include Maryland and Maine. For context, 10 states collect no lottery tax at all, which means a Powerball or Mega Millions winner in one of those states keeps an extra 9.85% of their lump sum compared to a winner in Minnesota.
Minnesota Lottery Tax FAQs
What is the Minnesota state tax on lottery winnings?
Minnesota taxes lottery winnings at a top marginal rate of 9.85%. This rate applies to the lump sum cash option from any Powerball or Mega Millions prize, and it is paid in addition to the federal lottery tax of up to 37% at the highest bracket. The lottery tax calculator above shows the exact dollar amount for any current jackpot.
Should I take the lump sum or annuity in Minnesota?
Most Powerball and Mega Millions winners choose the lump sum cash option. In Minnesota, both options face the same 9.85% state lottery tax rate, but the annuity spreads the tax across 30 years while the lump sum delivers the full cash value now. The lottery payout calculator above shows the lump sum after taxes; the annuity choice is a separate financial decision based on personal goals and investment return assumptions.
Does Minnesota withhold tax on a lottery payout before payment?
The IRS withholds 24% federal lottery tax on any lottery prize above $5,000 before the winner ever sees the check. Minnesota also withholds state tax at or near the 9.85% top rate at the moment of payout. The remaining federal balance, up to the 37% top bracket, then comes due in April when the winner files a federal return.
Can you stay anonymous if you win the lottery in Minnesota?
Yes, and no action is required. Minnesota state law makes the name and city of a lottery winner private data by default once the prize exceeds $10,000, which covers any realistic Powerball or Mega Millions jackpot. A winner who wants public recognition instead can choose to opt in to publicity, but privacy is the automatic starting point.