What are the tax liabilities on my prize?
For any prize you win playing Pick 3 or Pick 4, we do not withhold any taxes, and you are solely responsible for paying whatever taxes are appropriate in your jurisdiction of residence. For lotto jackpot games like Mega Millions and Powerball, the state lottery withholds taxes on prizes greater than $5,000 when the winning ticket is redeemed. Federal taxes of 25% are automatically withheld for USA citizens, or 30% for non-USA citizens. State taxes vary from state-to-state, so we can only say you should be prepared for somewhere between 3% and 7% for state taxes. Again, these taxes are only withheld for jackpot games, not for numbers games like Pick 3 and Pick 4. Although taxes are always a big topic among lottery players, that is really all the information we have to provide to you. There are other web sites on the Internet that deal with lottery prize taxes far better than we could!
