How Much Are Taxes on $1 Million Lottery Winnings in Massachusetts?

Learn about state and federal taxes on $1 million lottery winnings in Massachusetts and find out how much you keep after taxes.

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In Massachusetts, lottery winnings over $600 are subject to a 5% state tax. If you win $1 million, you would owe $50,000 in state taxes. Additionally, lottery winnings are also subject to federal taxes, which can vary but are typically 24% for lottery winnings, amounting to $240,000 on $1 million. Therefore, the total tax you might expect to pay on $1 million lottery winnings could be around $290,000, leaving you with $710,000.

FAQs & Answers

  1. What is the state tax rate on lottery winnings in Massachusetts? In Massachusetts, lottery winnings over $600 are taxed at a 5% state tax rate.
  2. How much federal tax is deducted from lottery winnings? Federal tax on lottery winnings is typically 24%, which applies to prizes like $1 million winnings.
  3. How much will I keep after taxes if I win $1 million in Massachusetts? After paying approximately 5% state tax and 24% federal tax, you can expect to keep around $710,000 of a $1 million lottery prize.

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