California Lottery: Do You Have to Pay Taxes on Your Winnings?

Discover if you pay taxes on California Lottery winnings and what federal taxes to expect on large prizes.

592 views

Yes, you do pay taxes on California Lottery winnings. California does not impose state tax on lottery prizes, but the federal government does. Federal taxes of 24% are withheld on prizes over $5,000. Additionally, winners should consult a tax professional, as other tax obligations or financial implications may apply.

FAQs & Answers

  1. What is the federal tax rate on lottery winnings? The federal tax rate on lottery winnings over $5,000 is 24%.
  2. Does California impose a state tax on lottery winnings? No, California does not impose a state tax on lottery prizes.
  3. How can I understand the tax implications of winning the lottery? It's best to consult a tax professional to understand all tax obligations and financial implications.
  4. Are there any additional taxes on lottery winnings? Yes, depending on the total winnings and your tax situation, additional federal taxes may apply.

Watch More

For more insights on lottery winnings and taxes, check out our guides on federal taxes applicable to various winnings and tips from tax professionals.

  1. California Lottery Winnings: No State Taxes Explained Learn if California taxes lottery winnings and how federal taxes apply to your windfall.
  2. California Lottery Winnings Tax: How Much Do You Really Keep? Discover how much California taxes your lottery winnings and tips to minimize your tax liability.